Christchurch earthquake: Rugby World Cup move triggers insurance loss
The organisers of the Rugby World Cup will be calling on their event insurance after being forced to move games from Christchurch because of earthquake damage to the stadium.
The organisers will transfer seven of the 48 matches to be played in NZ, with five pool games going to other parts of the country and two quarter-finals originally slated for Christchurch moving to Auckland, which has the only other stadium large enough to hold the expected number of spectators, plus accommodation.
The organisers made the decision after the Christchurch stadium owner said it could not guarantee the ground would be repaired in time for the tournament, which runs from September 9 to October 23.
There were also concerns about the ability to work during aftershocks and whether resources should go to repairing a stadium when other public infrastructure is badly damaged and residents are spending the winter in temporary housing.
Rugby New Zealand 2011 Chairman Brian Roche says with just 25 weeks to kick-off, the risks were too great.
“The timeframes for repairs were too tight, the uncertainty too much,” he said.
The organisers would not comment on the loss other than to say the event has comprehensive insurance in place to cover a range of risks. insuranceNEWS.com.au understands the cover was placed with a European insurer.
Rugby World Cup 2011 has offered ticket holders a refund or tickets to the matches elsewhere.
Peter McKenzie, GM at sporting event insurance specialist SLE Worldwide Australia, says there will be losses associated with moving the event, but points out it is not a total cancellation because the games can be moved elsewhere.
SRS Underwriting Agency Director of Underwriting Paul O’Leary says insurance for this type of event would typically cover the costs of relocating to another venue, but ticket losses might not be triggered if all tickets are sold.