AXA cancels world cup soccer coverage

The world soccer governing body FIFA says its largest insurer for the upcoming 2002 World Cup has cancelled its portion of the insurance program covering the football events to take place in Korea and Japan.

A FIFA statement says AXA will terminate its insurance coverage effective from November this year. The total insurance program is valued at (Swiss Francs) CHF1.4 billion, equivalent to about Cdn$1.34 billion. AXA’s portion of this has not been disclosed, although media speculation pegs the amount at around Cdn$1.27 billion. AXA has not released any comment with regard to its action, although it is believed that the insurer withdrew based on the potential risk of terrorism.

FIFA says that the organization had in no manner reneged on contractual obligations with AXA, with all premiums thus far due having been paid in full. FIFA says AXA had confirmed its coverage as recently as October 2 of this year. “The world football governing body together with its insurance partners will now search for alternatives, while at the same time investigating the legal implications of this situation.”