Lesson From Wimbledon
Wimbledon undoubtedly one of the most amazing game to watch for, it is the oldest tennis tournament in the world and the most prestigious, though I have a shallow interest in Tennis it's on my bucket list, recently I was going through some of the articles and where my eyes popped up on this story, and I thought it is something I should share with my readers.
Wimbledon was going to start from June 29 this year, and its one of the games where you need a lot of money to watch, its tickets are from 1000 to 20000 pounds. (depending on the match) and they make a revenue of 250 Million$, but it’s the 1st time after world war II that Wimbledon tournament has called off due to the virus.
But whats Interesting in this? Wimbledon risk and finance subcommittee insisted on a pandemic clause nearly 20 years ago so from the last 17 years. Wimbledon used to buy nearly 2 Million $ worth Pandemic insurance for last 17 years and paid nearly 34 Million$ as a premium where the possibility of Pandemic in the world was near to 0, still, it continued, this time because of the Insurance they took it will receive a whopping claim of 141 Million$ estimated to cover its losses they have to suffer because of cancellation of tournament, Whooping isn’t it?
But let’s understand the thought process behind it, a committee to come to a point to take insurance before 20 years for a PANDEMIC which is the rarest to happen and for 17 years continuing to pay a big premium of 2 Million$ equals to 34 Million$ which has no return on it, what a risk management system it would have and the perseverance to follow it, for nearly 2 Decades, is just commendable, today we all would be feeling wow 141 Million $, it is so great, but it has also taken the pain of paying 34 Million $ in premium for last 17 years, where the whole world would have thought they are doing the stupid thing and wasting 2 Million $ a year and making the insurance company richer.
We consult our client for the Security Basket – Most of them require High Life insurance as they are the single bread earner or you need a pump in your health insurance, we have got feedback from intelligent people that it’s a waste of money and nothing happens, we have also seen families stop LIfe Insurance just because they have paid the premium for 10 years and never used the insurance service not only individuals but most of the companies in don’t have adequate Risk Management Systems because we never think and sit on the uneven risk that we can get in our life, business or profession, we just go with the flow, trust on god and our luck, but it’s a serious need of the hour for all of us to sit and think what are the risk ahead in life, business, health, etc and to plan like Wimbledon team, maybe for certain years we have to pay that heavy premium that can be painful, but something irrational like this happens it may save us from the biggest financial blunder.
Send me an Email for your Question ppdave007@gmail.com
Wimbledon was going to start from June 29 this year, and its one of the games where you need a lot of money to watch, its tickets are from 1000 to 20000 pounds. (depending on the match) and they make a revenue of 250 Million$, but it’s the 1st time after world war II that Wimbledon tournament has called off due to the virus.
But whats Interesting in this? Wimbledon risk and finance subcommittee insisted on a pandemic clause nearly 20 years ago so from the last 17 years. Wimbledon used to buy nearly 2 Million $ worth Pandemic insurance for last 17 years and paid nearly 34 Million$ as a premium where the possibility of Pandemic in the world was near to 0, still, it continued, this time because of the Insurance they took it will receive a whopping claim of 141 Million$ estimated to cover its losses they have to suffer because of cancellation of tournament, Whooping isn’t it?
But let’s understand the thought process behind it, a committee to come to a point to take insurance before 20 years for a PANDEMIC which is the rarest to happen and for 17 years continuing to pay a big premium of 2 Million$ equals to 34 Million$ which has no return on it, what a risk management system it would have and the perseverance to follow it, for nearly 2 Decades, is just commendable, today we all would be feeling wow 141 Million $, it is so great, but it has also taken the pain of paying 34 Million $ in premium for last 17 years, where the whole world would have thought they are doing the stupid thing and wasting 2 Million $ a year and making the insurance company richer.
We consult our client for the Security Basket – Most of them require High Life insurance as they are the single bread earner or you need a pump in your health insurance, we have got feedback from intelligent people that it’s a waste of money and nothing happens, we have also seen families stop LIfe Insurance just because they have paid the premium for 10 years and never used the insurance service not only individuals but most of the companies in don’t have adequate Risk Management Systems because we never think and sit on the uneven risk that we can get in our life, business or profession, we just go with the flow, trust on god and our luck, but it’s a serious need of the hour for all of us to sit and think what are the risk ahead in life, business, health, etc and to plan like Wimbledon team, maybe for certain years we have to pay that heavy premium that can be painful, but something irrational like this happens it may save us from the biggest financial blunder.
Send me an Email for your Question ppdave007@gmail.com
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