 "Player insurance premiums up 25% this IPL amid rise in players' brand value")
As the Indian Premier League (IPL) becomes bolder and better each season, the insurance cover also becomes bigger for players of the planet's richest cricket tournament. The insurance premiums for players have gone up by 20 to 25 per cent from last year due to a surge in cricketers’ brand value and their increased susceptibility to injury, resulting in a loss for the insurers, according to industry participants.
The IPL insurance policy involves various stakeholders such as the Board of Control for Cricket in India (BCCI), the teams, the broadcaster, sponsors and ancillary service providers. It covers revenue loss on account of unforeseen events, such as weather issues, riots, loss of player fees on account of injury or illness and medical costs.
“In the last year, insurance companies experienced loss due to players getting injured and not being able to play the full tournament and cancellation of their entire assignment. This is likely to have pushed the insurance premiums for players. Also, the fees of players have also increased from last year, causing the franchise owners to look at higher amounts of insurance, and likely pushing the player insurance rates higher this time,” said Amit Solanki, Head Liability & Special Risk, Howden India.
Some key Indian players like Shreyas Iyer, Washington Sunder, Prasidh Krishna were ruled out in the last edition due to injuries.
“The IPL insurance consists of event cancellation insurance and IPL player insurance. The increase in premiums for event cancellation, which accounts for a major part of IPL insurance, is relatively flat compared to the previous year as cancellation insurance has not seen too many losses. On the other hand, the insurance premiums for IPL players have increased by 20 to 25 per cent from last year due to increased player value and injuries to the players. The overall IPL insurance has witnessed a nearly 10 per cent increase from last year,” said Shaista Valji, Associate Director – Sports, Alliance Insurance Brokers.
Player injuries are increasing and there were payout claims last year, meaning that the insurance companies feel there is a more enhanced risk, even though the overall values may be lower in comparison, Valji said.
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The IPL’s financial exposure or risk value in 2024 has increased upwards of Rs 10,000 crore. The IPL season’s exposure last year was around Rs 10,000 crore, increasing from around Rs 5,000 crore in 2022, Valji added.
According to experts from the Insurance Brokers Association of India, the event cancellation premiums have been flat because the major risk factor for it is climate-related like a major unforeseen natural catastrophe. According to insurance brokers, the IPL is generally organised around a safe period of the year like March to May and spread across different locations in the country, reducing the risk exposure.
However, there has been an uptick in players’ injuries during practice sessions or while playing. The players are getting more exposed because of the different cricket tournaments taking place across the year, causing an increase in risk exposure. Increased workload for the players is the prime cause for picking up injuries, insurers said.
This year, there is another major event coinciding with the IPL season. General elections are scheduled for next month.
Valji believes the Lok Sabha polls will not be a major risk factor as India has previously held the IPL during general elections in 2019.