World Cup insurers risk flood of claims if Russia, Qatar lose bids

World Cup insurers are likely to refuse to pay out on many cancellation contracts if Russia and Qatar lose the rights to hold the tournaments because of fraud, industry experts said.

Russia and Qatar could be stripped of their World Cup hosting rights if evidence emerges of bribery in the bidding process, the head of the audit and compliance committee of soccer's governing body FIFA has said.

Lawyers and insurance specialists say many contracts could be annulled or go into dispute if governments, organising bodies, or firms such as sponsors, broadcasters or hospitality providers have taken out cancellation insurance and are found to be linked to fraudulent action.

Others who took out such contracts and did not have knowledge of any wrongdoing could be paid out in full.

Russia and Qatar have denied wrongdoing in the conduct of their bids for the 2018 and 2022 tournaments, which were not the subject of recent charges announced by U.S. prosecutors against FIFA officials. Read the full story

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

RUSSIA: From January to July MTPL paid claims dropped by 29%

For the first 7 months of 2018 MTPL premiums of local insurers decreased by 1% to RUB 129.9 billion* y-o-y, at that paid claims demonstrated a more rapid declining trend (- 29%) to RUB 79.7 billion, according to the data from the Russian Association of Motor Insurers (RAMI).

2018-09-05

ON THE MOVE

TOP EVENT

photodune-3834701-laughing-girl-xs

LIVE from Monte Carlo: The 62nd edition of the "Rendez-Vous de Septembre"

The 62nd edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers starts Sunday in Monte Carlo. XPRIMM Publications covering the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel, as well as at the most important venues in Monte Carlo.

13.09.2018

Willis Re - Market still soft, but functional

Despite the high losses from 2017 the reinsurance market is still soft, James KENT, Global Chief Executive Officer (CEO) of Willis Re stated at a press briefing in Monte Carlo.

10.09.2018

AIR launches severe thunderstorm model

Catastrophe risk modeling firm AIR Worldwide released a new severe thunderstorm model for Europe. Together with AIR's Extratropical Cyclone Model for Europe and European flood models, this new model now allows for a comprehensive assessment of atmospheric risk in this region.

10.09.2018

See all