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Article: Chicago readies capital cover for Olympics; Unique arrangement combines elements of surety coverage and contingent capital.(NEWS)
- Article from:
- Business Insurance
- Article date:
- September 28, 2009
- Author:
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Byline: ROBERTO CENICEROS
Chicago's bid to host the 2016 Summer Olympic Games has spurred a creative insurance arrangement that would protect taxpayers from footing the bill for construction development while helping ensure the project is completed on time.
The coverage, dubbed capital replacement insurance, applies a hybrid of surety and contingent capital, said a source familiar with insurance negotiations for Chicago. The International Olympic Committee will announce the winning bid Oct. 2 in Copenhagen, Denmark.
At least three Europe-based multiline insurers would provide an infusion of up to $250 million in capital under the capital ...