IPL insurance premiums likely to drop 15-20% this year on lower claims

Driven by rising valuations, the sum insured has gone up 25-30%

Insurance premiums for the Indian Premier League (IPL) are likely to drop by 15-20 per cent this year due to lower claims and improved underwriting capacity, even as the league’s rising valuations, increased revenues, and higher sponsorships drive a 25-30 per cent increase in the sum insured, industry sources said.

 

This year, the IPL will start on March 28 and is scheduled to end on May 31, with 74 matches.

 

Industry sources also indicated that since the IPL is an event-based risk, the ongoing crisis in West Asia is not a major threat. However, underwriters also considered it while assessing the risk, they said.

 

The average sum insured for franchises has increased to roughly ₹55-75 crore, while that for event cancellation — which includes coverage taken by organisers, franchisees, sponsors, and broadcasters — has increased to ₹80 crore this year. The Board of Control for Cricket in India (BCCI) has also taken player loss-of-fees cover for contracted Indian players participating in the IPL, industry sources further said.

 

“This decline (in premium) is mainly due to improved claim experience — fewer match washouts and lower losses compared to earlier years, when multiple games were completely cancelled due to weather. Weather remains the biggest risk factor for IPL matches, given the multiple locations across India. However, better player selection (fitter and well-trained players) has reduced injury-related claims, further improving outcomes for insurers,” said Abizar Bohra, head & executive vice president, sports leisure and entertainment, commercial risk, India at Aon.

 

He also added that the Indian insurance market has matured, with domestic insurers now handling most of the risk. Reinsurance is currently limited because the coverage amounts for most stakeholders are not large enough to require it.

 

Anish Pillai, president & deputy head - liability & special risk at Howden India, said: “The primary risks being insured include event cancellation, player injury (loss of fees), weather disruptions, terrorism threats, and revenue protection across sponsorships, broadcasting, and ticketing. Weather continues to be a major concern along with broader security risks, although current geopolitical tensions are not seen as a significant threat at this time.”

 

Insurers recorded fewer losses last year, with only one match cancellation and another suspension due to India-Pakistan tensions. In comparison, the 2024 season saw several match cancellations due to complete washouts. Loss experience has remained broadly flat at upwards of ₹50 crore in 2025, similar to 2024. Owing to fewer player injuries and improved terms, premiums for franchises have dropped to roughly ₹3-4 crore from ₹5-6 crore last year. There are 10 franchises participating in the league this season. Apart from improved claims experience, franchises are also securing better insurance terms.

 

“Additionally, improved terms — such as removal of the ‘one match deductible’ for player insurance (now replaced by a flat 5-10 per cent monetary deductible) — have made policies more favourable for franchises,” Pillai added.