AXA cancels world cup soccer coverage allegedly due to terrorism risk

The world soccer governing body FIFA announced today that its largest insurer for the upcoming 2002 World Cup has provided a cancellation notice for its portion of the insurance program covering the football events to take place in Korea and Japan. FIFA says, however, that this will not endanger the staging of the 2002 World Cup.
A FIFA statement says AXA plans to terminate its insurance coverage effective from the beginning of November this year. The total insurance program is valued at (Swiss Francs) CHF1.4 billion, equivalent to about Cdn$1.34 billion. AXA’s portion of this has not been disclosed, although media speculation pegs the amount at around Cdn$1.27 billion. AXA has not released any comment with regard to its action.
FIFA says that the organization had in no manner reneged on any contractual obligations with AXA, and that all premiums thus far due of CHF16.4 million (Cdn$15.9 million) of a total of CHF27.4 million (Cdn$26.3 million) has been paid in full. FIFA claims that AXA had provided confirmation of the validity of the insurance program as recently as October 2 of this year. “The world football governing body together with its insurance partners will now search for alternatives, while at the same time investigating the legal implications of this situation.”