Home Insurance The Biggest Winner in Sports Is — the Insurance Industry?
Author: Weld Royal | Photos: Shutterstock
As the sports economy grows, insurers rush to cover risks from World Cup disruptions to NIL liabilities.
This article appears in the September issue of Global Finance Magazine.
On 104 separate occasions in June and July, World Cup organizers tried something new. They held games at 16 venues across Mexico, the U.S., and Canada. More games in more locations increased the risk of cancellation due to threats of terrorism, fire, and climate-related catastrophes, as well as cyber incidents and other disruptions.
Long before players took the field, a small army of insurance professionals analyzed risks, negotiated policies, and drafted contracts to help ensure FIFA would not suffer crippling financial losses if an event was canceled. FIFA carried about $1 billion in event-cancellation coverage for this year’s tournament, up from an estimated $900 million for Qatar in 2022, according to Mario De Cicco, vice president of Morningstar DBRS’s Global Insurance & Pension Ratings group.
FIFA is just one component of the mammoth worldwide sports industry, which the World Economic Forum estimates generated $2.3 trillion in revenue in 2025.
“It’s not only the large events like the World Cup which are becoming more frequent and more complex,” said De Cicco. “There is also growing participation at every level, from amateurs to professionals. So there are more potential financial losses, and that creates higher demand for insurance protection.”
The magnitude of the money isn’t the only thing that’s changed; the risks CFOs must insure against are also evolving. A decade ago, sports insurance meant stadiums, workers’ comp, and injured players. Today it means ransomware, brand damage, NIL (name, image, and likeness) contracts, and even sports-betting integrations with little or no actuarial history, forcing carriers and brokers to build coverage from scratch in real time for risks that may not have existed five years ago.
Burgeoning demand has transformed a specialty market into a profit center for insurers, according to De Cicco. Large carriers such as Zurich, Munich Re, Swiss Re, and Allianz dominate the top end, he noted, while niche players like American Specialty Insurance and Berkley Insurance add depth. Often, the largest sports insurance contracts are underwritten by a syndicate, using a risk-sharing structure to mitigate catastrophic losses.
College sports illustrate what can happen when rapid growth hits an area with little or no actuarial history. Much of the growth comes from NIL compensation and the revenue-sharing framework established by the landmark 2025 House v. NCAA decision , which turned university athletic departments in the U.S. into direct payers of athlete compensation — and bearers of financial risk when a star gets hurt.
Zurich entered the market in August 2025 with the sports-data firm Players Health, after about 15 years of providing coverage to schools and sports organizations. They built a product that reimburses institutions for NIL value when an athlete misses at least 40% of a season, up to policy limits of $2 million. However, for the new line, Zurich had no direct actuarial history.
“We weren’t pricing it blind,” said Marty Banaszek, head of Group Accident at Zurich North America; Players Health’s underlying injury data across sport and position helped to make the risk underwritable. Premiums run roug…