Hiscox and Avoca Elite Sports team up to launch new asset-protection product for top European football clubs


  • Innovative Insurance product created to protect football clubs if star player(s) suffer illness or injury

  • Clubs can now, for first time, protect themselves against the financial impact resulting from absence of key team members whether it be from a drop in the players transfer value, or reduced revenues due to weaker than expected on pitch performance

  • Clubs' agreed squad transfer values covered, regardless of players' age and medical history


London (25 November 2013) – Europe's leading football clubs can now get comprehensive financial protection for what is often their biggest asset – their players – through a new product created by Avoca Elite Sports (AES) and specialist insurer Hiscox.

The product, called MAXI, covers teams against a fall in a player's agreed transfer value resulting from serious injury or illness, and compensates for their potential lost revenues caused by that player's prolonged absence.

Football clubs invest heavily in stars to succeed in their domestic leagues and the showpiece European competitions, with Premier League clubs spending a record £630 million in this year's summer transfer window, according to Deloitte. Across all of the five major divisions in Europe, clubs' gross transfer spending is up compared to the previous year, it found*.

Despite spending such large sums, clubs have little financial protection if something goes wrong. The combined value of the squads of the top 20 European football clubs is estimated to be over £5 billion, but, analysis by AES and Hiscox reveals that very little of this amount is protected.

This is because, until now, there was simply no product that covered clubs adequately against adverse events occurring to their stars either on or off the pitch that could wipe millions off the value of their squad and ruin their season – as well as their finances. Existing insurance protection compensates clubs only for the wage costs of a long-term injured player or for an insured value if a player is forced to retire through injury – a rare occurrence at the top level.

“Football clubs are among the very few businesses whose key assets, on which they rely for their success, are exposed to harm on a weekly basis,” says Guillaume Bonnissent, Head of Alternative Distribution Division at Hiscox. “Each Saturday, they send teams onto the pitch that are worth tens, if not hundreds, of millions of pounds, without knowing whether they will return in one piece. Until now clubs haven't had the ability to comprehensively protect these expensive assets in the same way that other businesses can protect their balance sheets.”

AES and Hiscox have worked closely with leading Premier League clubs during the past two years to design MAXI. They have also been in discussion with several of the game's administrators about how MAXI can be used to help clubs manage their finances and objectives under Financial Fair Play rules.

David Lampitt, former Head of Financial Regulation at the Football Association and former Chief Executive of Portsmouth FC, is a consultant to AES. He added: “With the advent of Financial Fair Play, clubs are going to be far more restricted in their ability to inject cash into their squads to mitigate the loss of key players. Dealing with those changing circumstances is a must for all clubs. What's good about this product is that it provides a new way of protecting clubs from potentially significant financial shocks. It also reflects an increasingly professional approach to financial risk management being taken in football."

Hiscox leads the risk protection provided by MAXI, with additional backing from several of the world's biggest insurers, including AXA, Munich Re and Swiss Re.


For further information please contact:

Hiscox Ltd    
Kevin McDougall +44 (0) 20 7448 6523 [email protected]

Notes to editors:



About Hiscox

Hiscox, headquartered in Bermuda, is an international specialist insurance group listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group – Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox London Market underwrites mainly internationally traded business in the London Market – generally large or complex business which needs to be shared with other insurers or needs the international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA.

For further information, visit www.hiscoxgroup.com.

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