Munich Re has $350m of exposure – the largest slice
The world's insurance companies have sold policies covering $5bn worth of risks linked to the football world cup, Reuters reports.
Munich Re is holding about $350m of exposure, said Sabine Bach, head of contingency risk "That's not chicken feed. We have got the biggest share of insurers' risks," Bach said.
World No. 2 reinsurer Swiss Re is also covering a triple digit million amount, said company special risks specialist Hans Steffen. Europe's biggest insurer Allianz and No 4 reinsurer Hannover Re also hold World Cup risks.
Track record
South Africa has already managed the rugby and cricket world cups. "Naturally the soccer World Cup is bigger, but South Africa has shown that they can do it," said Munich Re's Bach. "The cancellation risk is no higher than in many other countries," she said.
"For an additional premium, the risk of war or a terror attack can also be covered," said Swiss Re's Steffen, adding that some organisers had taken up the offer. The worst-case scenario would be a terror attack at the opening ceremony in a stadium with several thousand dead."
For Munich Re's Bach, the fear is of no grand finale. "If the television screens were blank, that would be bad."
