Eyes across the globe are tuning in several nights a week to see the 2018 World Cup in action. Of course, such a major event requires a lot of insurance coverage to make sure everything goes off without a hitch. As it turns, out those premiums are even worse this year than before.
The rising risk of terror attacks and damage from local rabble-rousers have caused premiums for players and businesses that are buying insurance policies related to the world cup to rise considerably more than they were during the World Cup in Brazil.
Expert insurers and brokers estimate that the 2018 World Cup in Russia has an insured value of roughly $10 billion. To put that in perspective, insurance premiums for this year’s World Cup are 10% higher than they were for the 2014 World Cup or any other World Cup from the past.
A big part of this increase is simply due to the location of the event. While the crisis-free Sochi Olympics did help out Russia’s credibility, the myriad of conflicts the country is still dealing with has significantly increased the risk of attack.
The type of people and businesses that are most affected by these changes are the stadium owners, ticketing agents, food service companies and, of course, the players. All of these people need to consider insuring against risks like kidnapping, cyber attacks, event cancellations and personal injury.
While the World Cup is certain to hold the world’s attention, it’s also an interesting case-study for those in the insurance world to look at. International events are always difficult to insure, but the current world climate is making it more expensive than ever.