At the beginning of 2019, the sporting calendar was full of events for us all to look forward to. The Olympics, football’s Euro2020, both the 2020 and 2021 ICC Men’s T20 World Cups, however in the wake of Covid-19 they were swiftly cancelled. Elsewhere the 2020 World Athletics Indoor Championships, most of the major badminton tournaments, several MotoGP and Formula 1 races, most of the British Premier League, English Football League and rugby’s Gallagher English Premiership seasons where either delayed, re-organised or indeed fully cancelled.
Many of these sporting bodies made considerable losses – including in America where the NBA, MLB and NFL reportedly lost nearly $13 billion – however there was one sporting organisation that, although did make some loses, were not as high as they could have been.
The All England Lawn Tennis Club (AELTC) who organises the annual Wimbledon competition posted an operating profit of £40.5 million in their 2020 financial statement. Compare this figure to the £50.1 million posted in 2019 and it is clear to see they were one of the ‘winners’ in the fight against Covid-19. But how were a company who had to cancel their flagship competition able to keep their heads above water?
Largely it was thanks to the pandemic insurance policy that the organisers had in place for the previous 17 years. After paying around £1.5 million each year it has been estimated that AELTC are due a pay-out of £114 million, however the company has confirmed that a final settlement has not yet been agreed with the insurance company.
Insurance is a product that is available to everyone, but not everyone takes it. This could be due to financial restraints, lack of knowledge or sheer confidence that you do not need it. But you do!
We all know that we should have insurance for our home, our car and our holidays. Some take life insurance and some even insure parts of their bodies or partner. Think celebrities who make their money from their voice or sporting prowess. Or Ant and Dec who revealed in 2018 that they have a six-figure insurance policy on each other in the event one of them dies.
Yet there are many other insurances that should be natural for everyone to have, to ensure that not only are they protected but also their partner/spouse, their children, even their pets.
While 2020 figures are yet to be announced, the Association of British Insurers (ABI) confirmed that 2019 saw £5.7 billion paid out to UK policy holders in protection claims, £60.5 million of which was in individual income protection claims. It is fair to say that 2020 figures may be significantly higher due to the loss of income for so many families.
But with options such as individual income protection, critical illness, term life, whole of life, family income benefit (FIB) and total permanent disability insurance, how do you know which is best for your family or clients?
Equally, if indeed you have policies in place, it is important that, like your Will and Powers of Attorney, you keep these up to date so that if the unexpected does happen you know that you – and your loved ones – are covered.
Wimbledon is back again this June and although the company admit they have struggled to retain their pandemic insurance policy many supporters will be taking their own protection. Umbrellas for the inevitable downpour and some sun cream ‘just in case’ but come rain or shine the tennis combined with the strawberries, cream and Pimm’s are the things that really matter in SW19.