The Biggest Winner in Sports Is — the Insurance Industry?

In June and July of 2025, World Cup organizers held 104 games across Mexico, the U.S., and Canada, increasing the risk of cancellation due to terrorism, fire, climate-related catastrophes, cyber incidents, and other disruptions. FIFA took out $1 billion in event-cancellation coverage for this year's tournament, up from an estimated $900 million for the 2022 Qatar World Cup.

The sports industry globally, according to the World Economic Forum, generated $2.3 trillion in revenue in 2025. This growth extends beyond large events like the World Cup, as participation increases across all levels, from amateurs to professionals, resulting in more potential financial losses and higher demand for insurance protection.

The evolution of sports insurance has gone beyond traditional concerns such as stadiums, workers' compensation, and injured players. Today, risks include ransomware, brand damage, name, image, and likeness (NIL) contracts, and sports-betting integrations. Insurers like Zurich, Munich Re, Swiss Re, and Allianz dominate the market, while niche players like American Specialty Insurance and Berkley Insurance add depth to the specialty market.

NIL compensation and the revenue-sharing framework established by the 2025 House v. NCAA decision have transformed college sports. Zurich entered the market in August 2025 with Players Health, a sports-data firm, to provide coverage for NIL value when an athlete misses at least 40% of a season, up to policy limits of $2 million. However, Zurich had no direct actuarial history for this new line, as actuarial data was unavailable for this emerging risk.

NIL and revenue-sharing contracts now account for an approaching $3 billion market, with projections reaching $4 billion to $5 billion in a year, driven by a 30% to 40% annual growth rate. Rory Lough, senior vice president at Gallagher College, noted that risk has expanded beyond the physical, encompassing brand, data, governance, cyber threats, and more.

The increasing cyber risks in sports are particularly challenging to price due to their relative newness and the adaptability of cybercriminals. A ransomware attack on a stadium operator could simultaneously disrupt payment systems, digital ticketing, security access, and broadcast feeds. Moreover, deepfakes and misinformation can severely damage a team's reputation, a financial risk that is difficult to quantify.