IPL Insurance Under Scrutiny Amid Geopolitical Tensions

The suspension of the Indian Premier League (IPL), India's most heavily insured sporting event, has brought the utility and limits of event insurance into sharp focus, especially in light of rising geopolitical tensions.

Howden, the insurance broker to the BCCI, has acknowledged the suspension, stating it awaits an official decision on whether the event will be cancelled or rescheduled. "Match cancellations are complex and dynamic, and speculating is not in the best interest," the firm remarked.

Rising Premiums and Dwindling Reinsurance Support

Following Rs 50 crore in weather-related claims last season, IPL 2025 saw a sharp increase in premiums. Reinsurance support has also dwindled, with only 20-30% of structured risks being transferred.

The Challenge of War Clauses in Insurance Policies

The pressing issue is whether insurers will classify the current disruption as a war event. Most policies, except marine cargo, exclude war-related risks under force majeure, potentially denying even routine claims like travel cancellations.

"Event cancellations in the current scenario should be treated as insured events until declared otherwise," said Anup Dhingra, MD, FINPRO, IMEA. The vagueness of war clauses adds another layer of complexity, as noted by Rushik Patel of Edme Insurance Brokers.