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Security risk World Cup insurers want contract renegotiated
Updated: Friday October 12, 2001 7:43 AM
PRAGUE (Reuters) -- AXA, the main insurers of next year's World Cup finals, want to renegotiate the policy as a direct result of the attacks on the United States on September 11, FIFA president Sepp Blatter said Friday. "We have been given one month to renegotiate the deal that currently stands at 1.4 billion Swiss francs (US$852.1 million)," the president of the world governing soccer body told Reuters. The finals will be held in Japan and South Korea from May 31 to June 30. AXA have insured the World Cup for various risks including terrorism but told FIFA that they were no longer prepared to carry the risk following the attacks on the United States. AXA told FIFA their contract to insure the World Cup would become invalid on November 11 unless the deal was renegotiated. "I would have expected a company such as AXA to have given us some warning about this but there was absolutely none," said Blatter, who is attending an extraordinary congress of UEFA, European soccer's ruling body. "It really boils down to a question of money and they clearly want a bigger premium. "The deal will have to be renegotiated because the World Cup cannot go ahead without insurance which covers, for example, bank guarantees, marketing rights and also acts of terrorism." "There is no question that this will stop the World Cup which will definitely go ahead, and I have always said that a World Cup in the Far East would be extremely expensive, now it will be even more so." Tough security Japanese World Cup organizers (JAWOC) have promised to implement tougher security measures at the finals following the attacks in New York and Washington. Extra safety procedures Japanese organizers are likely to introduce include the use of metal detectors and X-ray equipment to check bags at the entrances of Japan's 10 World Cup stadia, JAWOC security chief Takahisa Ishida said Friday. "We understand the need to tighten security across the board. Checks will be very tight. There will be at least 700 security officials at each game to keep an eye out for anything suspicious," he told Reuters. Japanese organizers are set to increase their security budget by 25 percent to US$18.5 million as a result of the attacks. FIFA's World Cup premium totalled 27.4 million Swiss francs, paid in instalments leading up to the World Cup. Michel Zen-Ruffinen, FIFA's general secretary, said: "There are certain legal aspects of this which we are unhappy with. "But we have one month to find a solution. I am hopeful that we will be able to find an acceptable settlement. "This coming just eight months before the World Cup is a problem but I am hopeful it will be solved." A report in Friday's Financial Times said French insurers AXA were radically changing its strategy after the September 11 attacks. The report said the company would lay off staff, reduce sharply their use of outside consultants and invest only in vital new projects.
Copyright 2003 Reuters Limited. All rights reserved. |
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