Fifa has sought coverage totalling SFr4.85bn (£2bn) for the next two competitions in 2002 and 2006.

Fifa will have to look to the financial market for insurance cover

The sum insured is so large that the sports insurance market alone will not be able to cover it.

So, in what is thought to be the biggest insurance deal of its type, talks are being held top reach agreement for the transfer of risk from insurance to capital markets.

Albingia, the insurance subsidiary of Guardian Royal Exchange, will arrange the cover.

It is in talks with investment banks in the US and Switzerland hoping to securitise up to SFr1bn (£417m) of the risk.

If successful, the transaction would be the largest yet that transfers insurance risk to the bond and equity markets.

Fifa has sought £2bn insurance for the World Cups in 2002 and 2006

Albingia assistant general manager Juergen Goerling said: "We'll have to go to the financial markets. We have no other choice."

The sum insured for this year's competition is about SFr360m (£150m), which includes lost income from ticket sales, marketing and television rights if matches are cancelled.

And although most spectators may not know it, purchase of a ticket provides them with personal accident and legal expenses insurance.