The cancellation or transfer outside of Russia of the 2018 FIFA World Cup is insured in LEXGARANT

In the summer of 2017 LEXGARANT Insurance Company LTD insured the risk of a complete cancellation or transfer from Russia of the World Cup 2018 for any reason.

LEXGARANT was approached by an organization that acquired the exclusive right to use FIFA symbols for advertising purposes and production of souvenirs.

According to the agreement with FIFA, the amount paid for the exclusive right, in case of cancellation or transfer of the 2018 World Cup, was not returned, and all the produced promotional and souvenir products with the Championship symbols were to be destroyed.

The appeal to LEXGARANT was followed after a number of Russian insurance companies failed to provide insurance cover for the risk of a total cancellation or transfer outside Russia of the 2018 World Cup for any reason, due to the significant amount of the insurance sum and the inability to reinsure this risk on the domestic or western markets.

It is important to note that the insurer put forward a strict requirement - to reinsure at least 90% of the risk in the international market, which turned out to be beyond the strength of insurance companies, to which the insured had previously applied.

Despite the significant politicization of the World Cup 2018, the call of some politicians of some countries to boycott, cancel or transfer it from Russia, LEXGARANT managed to place 90% of this risk in the London market from reinsurers rated Standard & Poor's AA- (very strong).

Under the agreement of the parties, the deal was not subject to disclosure prior to the start of the semifinal games.