IPL sum insured drops significantly due to steep rise in premiums

The cumulative insurance cover taken by broadcasters, over-the-top platforms, and franchises for the Indian Premier League (IPL) has seen a significant drop from last year, amid a merger of broadcasting entities and a steep rise in premiums for franchises, according to experts.  Check IPL 2025 Match 4: DC vs LSG live score, match updates, full scorecard here

 

In 2024, the total insurance cover taken against the IPL was Rs 10,000 crore. Broadcasters, organisers, franchises, and sponsors had taken insurance for Rs 6,000 crore. Of this, broadcasters alone took insurance for Rs 3,500 crore for television revenue, while the remaining was taken by the others.

 

This year, the IPL started on March 22 and is scheduled to end on May 25. But certain franchises are still on the fence about taking insurance owing to the steep rise in premiums. The sum insured has dropped to nearly Rs 1,500 crore this season, according to experts.

 

The experts, however, added that franchises and broadcasters can take insurance even during the course of their matches, and that the franchises might obtain insurance closer to their respective matches.

 

“The insurance cover this year is likely to be much lower than the previous season due to mergers, acquisitions of some big broadcasting entities,” said Amit Agarwal, chief executive officer of insurance company Howden India.

 

Last year, Star Sports broadcast the IPL on television while Viacom18 streamed it on JioCinema. In November 2024, Reliance-led Viacom18 and Star India formed a joint venture — JioStar — which is broadcasting IPL 2025.

 

“In the previous season, the total IPL exposure amounted to Rs 10,000 crore, with approximately Rs 6,000 crore being insured. The coverage included the exposure of broadcasters, organisers, franchises, and sponsors. However, with the television broadcaster opting not to purchase coverage this season, the actual insured limits have significantly reduced,” an insurance broker said.

 

JioStar declined to comment on this story.

 

Meanwhile, franchises and others have seen a significant rise in premiums and stricter underwriting from insurance companies, owing to the washout of three matches in the last season. According to experts, the insurers faced losses upwards of Rs 50 crore due to weather-related events leading to cancellations.

 

“Owing to the three washouts last season and unpredictable weather patterns in recent times, determining an optimum premium rate has become increasingly challenging. A similar issue arises in the ‘player loss of fee’ cover, as the limits for this coverage are increasing due to the bigger IPL purse,” another insurance broker said.

 

The broker added that as a result of these factors, insurance premiums have risen significantly this year. “The average franchise premium has increased from Rs 1-2 crore last year to nearly Rs 5-6 crore this year.”

 

Meanwhile, the reinsurance capacity for sports insurance remains limited in the Indian market with most of them for support overseas and with Lloyds. “The reason for markets to get hard is consistent losses for the past few years from which Indian markets were not able to recover or have a sustainable book. On the other hand, Lloyds has not shown any deviation in the terms offered by them,” Agarwal of Howden said. 

At Stake

The total insurance cover against IPL was Rs 10,000 crore in 2024

  Broadcasters, organisers, franchises and sponsors had taken insurance for  Rs 6,000 crore

  According to experts the sum insured has dropped to about Rs 1,500 crore this season