Every four years Insurance Companies underwrite all the risks associated with holding and attending the World’s largest sporting event – The FIFA World Cup Finals.
Insurance Blog reports on the risks and covers available and the large premiums paid to ensure that this years Tournament currently going on in South Africa, went without a hitch…
The prior concerns and fears that had been raised over the insurance cover for the 2010 World Cup failed to materialise as the tournament passed off without a major incident or claim.
FIFA had been forced to build a R6.3 billion contingency fund (around a billion US dollars) to cater for the possible collapse of the 2010 event - a lot of money when you consider that the winners Spain only receive £40 million pounds ($60 million) in prize money. FIFA have taken out cover for any kind of interruption, delay or abandonment of the World Cup and the consequent loss of revenues.
Individual players and their respective Football Association’s had to make their own arrangements for sports disability and sports accident insurance , with the number of top players appearing at the tournament making it the most injury exposed in the history of the sport.
Fortunately for FIFA and the Insurance companies involved, the Tournament passed off without any major player injuries, which was fortunate as many National Football Associations, particularly those in Africa, would have struggled to meet the cost of covering the wages of the likes of Didier Drogba, Michael Essien, Soloman Kalou and Kolo & YaYa Toure, nevermind the liabilities to the individual Clubs.