Captive to support NCAA basketball bounce back

The National Collegiate Athletic Association (NCAA) in the US has set up a captive to cover its basketball tournament after failing to secure complete coverage in the past, according to  CBS.

The association's internal documents show its board of governors has agreed to establish a $175 million captive to cover the tournament, which was cancelled in 2020 due to the Covid-19 pandemic.

The 1910 Collective (the year the NCAA took its current name) will provide cover with money from "the current budget for third-party legal fees and insurance premiums, the current balance of the litigation reserve and additional dollars from other NCAA reserves," according to the October 2021 report to the NCAA Board of Governors.

Last year, Mark Emmert complained to reporters that virtually no major events were fully insured. The association did receive a $270m payout, however, following the cancellation of the 2020 tournament, which was among the largest event cancellation insurance payouts in history.