Reinsurance quiz

Question 1 of 8

Imagine that one of your clients asks you to assess a risk in connection with the organisation of the FIFA World Cup. The object of the cover is to insure the self-financed costs of the event against cancellation due to external factors.

Question: Which of the following scenarios would presumably involve the maximum loss potential?

Scenario 1: Shortly before one of the preliminaries takes place, a fatal traffic accident occurs in which the referees and their substitutes are killed.

Scenario 2: The second half of the final cannot be transmitted to the satellite because of an error in the media centre. As a result, viewers worldwide are unable to receive any television pictures.

Scenario 3: Three weeks before the start of the World Cup, the WHO declares a Phase 6 Pandemic Alert. An extremely aggressive and lethal virus spreads across the globe at tremendous speed, causing the death of over 250,000 people worldwide.

Scenario 4: Right before the first quarter-final, a three-day general strike is called. The infrastructure collapses.

Scenario 5: Three days before the final, the head of state perishes in an attack. A five-day national mourning is declared. No events are allowed to take place during this time.

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