Rain-hit cricket World Cup may cost insurers millions
June 19, 2019
LONDON (Reuters) - Lost revenues from a record number of rain-hit cricket World Cup games in England and Wales may result in insurance claims of a few million pounds for each abandoned fixture, insurance sources say. Broadcasters, organisers, venues, advertising sponsors and catering establishments are among firms to have missed out after four matches were called off in an exceptionally rainy June. Due to the hectic nature of the tournament, which features 48 one-day matches between May and July, finishing on July 14, there is no opportunity to reschedule, except for the semi-finals and final. Companies typically buy contingency, or cancellation, insurance for sporting events, which covers everything from rain stopping play to terror attacks. Lloyd’s of London insurer Beazley estimated, for example, that the football World Cup in Russia in 2018 was insured for more than $10 billion (£8 billion), including cover for property damage and cyber breaches, as well as cancellation. Insurers say cover for the less-popular cricket equivalent will be much lower. Star India has the global media rights for the cricket tournament but has licensed further rights to sports broadcasters in other countries. However, it is likely to have lost at least £1 million for each abandoned match, insurance specialists estimate, as it gains huge advertising revenue in India for a popular sport in a nation of more than one billion people. Star India did not respond to requests for comment. There are 123 advertising spots for broadcasters in a World Cup match, after each of the 100 overs and 20 wickets and during refreshment breaks, said Jonathan Ticehurst, a director at Lloyd’s of London insurance broker Bishopsgate, who has arranged insurance for previous cricket World Cups. Broadcasters buy contingency insurance, as “in the event of no play, they are not able to charge” the advertisers, he said.