The terrorist strikes in Bombay will have significant repercussions for world cricket. At a conservative estimate, 70 per cent of the world’s cricket revenues are generated in India and the attacks will transform the risk assessment of the game there and may create a “crisis of confidence” in sports tourism to the region.

England’s decision to go home may also trigger a compensation issue for the two lost one-day internationals, with India’s board and Nimbus, the company that owns the right to televise India’s home matches.

“If you look at Pakistan and Sri Lanka, they quite clearly have their own political difficulties, India has always floated just below the surface,” Jonathan Ticehurst, a sports insurance expert and director of Long Reach insurers, said.

“I organised the insurance of the IPL [Indian Premier League] and everyone had thought India is a multi-national, multicultural society and apart from the odd specific outrage, life goes on as it does in other parts of the world. I think what the last 24 hours has shown us is that, all of a sudden, India is right in the front line when it comes to terrorism.

“I don’t think there is any suggestion that it has been directed either at the current England tour or the Champions League. But as a consequence, the insurance market will significantly increase the premium rate they require to cover the cancellation of sporting events in India.”

The revenue of the Champions League was estimated at $15 million (about £9.7 million). It is believed that one of the Indian state insurers won the bid to insure the Champions League, with a figure close to a meagre $30,000.

“The London market quoted $60,000 for the abandonment for the entire tournament,” Ticehurst said. “That shows you how they regarded the Indian risk. It isn’t going to be $60,000 next year.

“The biggest risk for cricket is weather. Now there is so much cricket, it has to be played in the damp months and, with climate change, trying to work out the risks is something of an inaccurate science. But you can’t factor in terrorism, you cannot predict it.

“The place to start is 2001 and the Twin Towers. Prior to that, terrorism insurance was thrown in basically free of charge on a general Lloyds of London cancellation and abandonment insurance policy for all these big events.

“The postponement of the Ryder Cup by one year in 2001 cost the London market around £15 million. So from January 2002 onwards, terrorism became an insurable risk in its own right and events have shown since that this was probably the correct decision.”

Andy Sutherden, managing director of sports marketing and sponsorship for Hill & Knowlton, said sports tourism will be hit. “The loss of revenue from those staying at home will be significant,” Sutherden said. “I think there will be a crisis of confidence in attending sport in this part of the world and confidence is quite a difficult thing to win back at speed.

“The grounds haven’t been touched, so there is quite a legal wrangle waiting to unfold [between India and England]. Force majeure [the clause in contracts which frees both parties from legal responsibility] has got to come from an independent party.” For this reason, in the case of Zimbabwe, the ECB wanted the Government to advise it not to allow England to travel.

Ticehurst believes that security will adapt to make the events safer, if more costly to run. “I went on the security tour to Zimbabwe in 2002 with the ICC as their insurance adviser, prior to the 2003 World Cup and my view was that it was the safest place in the world to play cricket because the security was so tight,” he said. “I think the same will happen when the Champions League is rescheduled and the same for next year and the IPL.”

Andrew Wildblood, a senior vice-president and corporate director for India at IMG and one of the architects of the IPL, said: “It’s too early to say, but generally when these things happen, the world returns to normality, otherwise the world would stop. But normal now is not what normal was pre9/11. These circumstances cannot be planned for.”