Soccer’s World Cup – The Summer’s Riskiest Event?

The FIFA 2010 World Cup of Soccer involves over 700 athletes from 32 nations…and a staggering $9+ billion in total insurance coverage.

The event is historic in that South Africa is hosting the event for the first time on the African continent. Only 20 years ago, South Africa’s apartheid practice caused it to be banned from most international sporting competition. But the dramatic transformation of the nation sees South Africa now hosting this prestigious event that will eclipse the summer Olympic Games as measured by global television audience.

Terrorist fears and security concerns dominate much of the focus on insurance and risk management preparation for the 2.75 million ticketholders. The dimensions of the event are expected to be particularly enticing to terrorist organizations due to the global TV audience and huge media attention. The largest stadium – at Johannesburg – has a capacity of 91,000.

The protection of players and fans is always an issue in the sport –
“hooliganism” is common in some quarters – but was heightened after the terrorist attack on the Togo National Team in Angola in January.

Other insurance coverage provides protection for damage to stadiums and other venues with a limit of more than $4.5 billion. Five stadiums were built for the event, with 5 more receiving substantial upgrades.

Players are insured to a level of up to $60 million each against sports disability including accidental death and permanent injury while competing and for off-field incidents.

Total legal liability coverage for FIFA and related organizations has been purchased for $300 million per incident.

In addition, corporate sponsor, broadcasters, additional media and other business interests have been insured for contingency issues to a total of approximately $4 billion.

The next month will tell the story of whether risk translates into loss. Or whether as declared by Nelson Mandela, the tournament is among the greatest events ever on the African continent.

Tags: africa, broker, economy, fifa, insurance, Liability, risk, soccer, terrorism, world cup