UK tennis tournament Wimbledon is set to receive over £100m from its pandemic insurance following the ongoing crisis.
It was revealed that the organisers have been paying £1.5m per year in pandemic insurance following the SARS outbreak in 2003. It has paid out roughly £25.5m over a 17-year period, and is now set to recover around £114m from a payout.
Ben Carey-Evans, Insurance Analyst at GlobalData, said: “Wimbledon has shown it is one step ahead of most businesses by having insurance in place for current events.
“Reputable sporting events, such as the Premier League and The Open (golf), have been cancelled or postponed, causing the organisers to lose a lot of their investment.”
He added: “This unprecedented disruption to events caused by Covid-19, and the significant payout to Wimbledon will surely see all event organizers around the world look to invest in this product in the future.
“This could see pandemic insurance move from being a niche product to an essential one for sports and music organizers. Insurers will face challenges in pricing premiums due to a sharp rise in popularity and the significant level of risk attached to the product.”
Data from GlobalData’s SportCal team said that whilst Wimbledon will shore up finances through saving on prize money and staff wages, organisers will still suffer a “significant loss” of income despite the sizeable insurance payout.
GlobalData said: “Insurance represents damage limitation for the competition, and it will find itself in a much stronger position than most other events in the world during this period.”