English
Jun
07
How much to Insure the World Cup? According to Lloyd's, GBP 6.2 billion
Posted on Jun 07, 2010 by Sergio Ulloa (G+)
Lloyd's of London has estimated that more than GBP 6.2 billion (USD 9 billion) in insurance policies have been taken out to protect against various risks involved with the 2010 FIFA World Cup in South Africa. The GBP 6.2 billion (USD 9 billion) estimate was divided into three categories; property insurance, contingency insurance and liability insurance, although absent from the estimates were the value of insurance policies for individual football players (inclusive of health insurance, life insurance and income protection plans). Many organizations and companies involved with the World Cup have taken out insurance policies, ranging from FIFA, the worldwide governing body of football, participating businesses and sponsors as well as broadcasters and national teams. The underwriters say that GBP 3.2 billion (USD 4.7 billion) worth of property insurance has been taken out on the various stadiums and training venues that will play home to the World Cup action, while contingency related insurance worth approximately GBP 3 billion (USD 4.4 billion) has also been purchased. A further GBP 200 million (USD 291.5 million) in liability insurance has also been purchased. Both property and liability insurance for the world cup are fairly straight forward, involving insuring the risk of damage to property for the former and insuring against the risk someone hurts themselves on or with the property for the latter. Contingency insurance in this case is basically set up to cover groups with a financial investment in the World Cup against unforeseen circumstances. Contingency insurance may include covering risks for businesses running competitions or offering prizes if a certain team wins and broadcasters, in the event of any delays in programming causing conflict with their scheduled advertising. Llyod's points out that insurance policies covering players for injury or disability have been left out of their estimates, as illness and injury insurance for each member in a team would be different and may or may not include insurance on a famous football player's brand recognition and insurance for lost earnings of player and the clubs they usually play for. Insurance Company Mentioned: Lloyd's of London
Lloyd's is the world's leading specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2009, 74 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide. Lloyd's is regulated by the Financial Service Authority.