ICC World Cup 2019: Rains wash away ₹1.8 billion for insurers-- and there may be more claims ahead
- Broadcasting firms are facing losses as matches are getting cancelled due to rain.
- Indian Insurance companies are now looking at losses of around ₹1.5- $1.8 billion.
Star Sportswhich bought the exclusive broadcasting rights from International Cricket Council, is likely to face a loss ₹1.4 billion.
- Out of $1.5 billion global sponsorship, $1 billion comes from India
Not only is it spoiling the fun, the monsoon is also costing Indian insurance companies as much as ₹1.5- ₹1.8 billion in claims.
Broadcasters have been making insurance claims for lost revenue due to match cancellations. They have lost out of ad revenue, in spite of paying ICC upfront for broadcast rights, the Times of India reported.
The ICC has conducted 25 out the 48 cricket matches till now. Out of these 25, four have been washed out because of heavy rains. In fact, three matches were cancelled without a single ball being bowled.
The continued losses
The three washed out matches in the first week of the tournament have reportedly caused a loss of ₹1.4 billion to broadcaster Star Sports, as reported by Insidesport.
ICC had sold the rights for two World Cups and two Champions Trophy matches and the T-20 World Cup for an eight year period to Star Sports. Star India had paid $1.98 billion for the broadcasting rights for 2015-2023 period, which is 80% more than the previous rights sale at $1.1 billion.
The sum insured for an ordinary match is around ₹600 million. It goes up to ₹700-₹800 million, for special matches like semifinals and finals.
For extremely high-viewership matches like India-Pakistan match, the insurance money involved could be over ₹1 billion, reported the Times of India.
These losses incurred are shared by many companies like New India Assurance, General Insurance Corporation, ICICI Lombard General Insurance and Oriental Insurance.
Cancellation of India-Pakistan match on Sunday, would have cost Star Sports ₹1.4 billion and had staggered impact on advertisers such as Coca-Cola, Uber, OnePlus and MRF Tyres, as per News18.
Fortunately, in spite of fear, it wasn’t.
India versus Pakistan World Cup game: Rain may interrupt second half, as per the weather forecast