MUMBAI: The India matches in the 2023 ICC Mens Cricket World Cup are emerging as the most insured sporting events in India, with each match being insured up to Rs 80 crore.
The most significant insurance coverage comes from the broadcaster Star India, where the total sum insured across 48 matches is estimated to be close to Rs 1800 crore.
This figure does not include the coverage purchased by other stakeholders.Insurers are breathing a sigh of relief as there havent been any significant match curtailments, and they are keeping their fingers crossed for the finals tomorrow.An insurance broker stated, The Asia Cup, which preceded the World Cup, experienced significant claims due to match cancellations caused by weather.
In comparison, the currentWorld Cup has witnessed only minor disruptions, which may not lead to a substantial claim.Insurance industry sources reveal that the premium paid by the broadcaster alone for the event is around Rs 64 crore.
According to industry experts, the stakes are particularly high for matches involving India, leading to increased viewership.
The insurance coverage for these matches go up to Rs 80 crore.A notable difference in this World Cup compared to the previous one hosted in India is that all stakeholders, including broadcasters, sponsors, stadium rights holders, and associations, are now aware of the risks and have invested in insurance, according to an insurance broker.The primary insurer for the event is New India Assurance, with top private insurance companies also involved.
The broker noted, There is reinsurance available but not to the full extent.
Thankfully, local insurance companies can offer capacity on their own balance sheet.In terms of financial risks, the broadcasters bear the largest burden, having already paid the rights fees.
The cost of these fees is typically secured by purchasing a one-ball bowled insurance cover, which ceases once the match begins.
Subsequent insurance is then acquired for the advertising revenue generated during broadcasts.
Sponsors also hold an insurable interest in the match.Insurance for the actual stadium event is obtained by the cricket associations, who purchase separate covers for the hosting fee and gate collections.