London market to play crucial role in insuring 2018 World Cup
With high security risks and exposures in the hundreds of millions, the London insurance market will play a crucial role in insuring the 2018 FIFA World Cup, according to Lloyd's insurer Beazley.
Taking place between June 14 and July 15 in Russia, this multi-billion dollar event poses some very significant security risks, and the cover for cyber-attacks, terrorism and acts of violence, along with kidnapping are appropriately high.
In terms of cyber risk, Beazley noted that ticketing companies and event organisers hold valuable financial and personal data. Communications networks could also be hit by a data breach, which could translate to a risk of lawsuit and a loss of revenue from advertisers and subscribers. The estimated sum insured for an individual ticketing agency is $200m+, and $100m+ for a global broadcaster.
Concerns over terrorism are also high, and there is roughly $250m estimated terrorism cover for the event, with a further $100m in active shooter cover.
Kidnap is also a significant risk for high profile attendees, including players, their families and team entourage. The estimated insured sum per team is $25m. With 32 teams, this totals at $800m in cover needed.
The players themselves also have up to $200m in exposure, with clubs purchasing personal accident, loss of play income, payroll protection, and asset/transfer value cover insurance.
With billions of dollars riding on the success of the tournament, event cancellation cover is estimated to be up $1.5bn, including TV rights, sponsorship, advertising and ticket refunds.
Hotels are also faced with huge losses should the event be cancelled, postponed or relocated - with up $100m in cover for this.
Beazley estimates and insured sum of $500m for event cancellation in the hospitality industry, which cover corporate hospitality, event companies and souvenir manufacturers.
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