News Tech: The threat of war between Russia and Ukraine is the biggest risk facing insurers providing coverage during the Beijing Winter Olympics. A top event on the sports calendar, the Olympics has always been a major business opportunity and a major headache for the commercial insurance industry. Insurance companies have paid hundreds of millions of dollars to local organizing committees, industry sources say, to recoup costs such as rebooking hotels and sports venues for the 2020 Olympics in Tokyo. was postponed for one year.
Mosquito-borne Zika virus was a concern at the Rio 2016 Summer Olympics The focus was in 2018, both events went well. “Risk and the insurance industry will cross their fingers on whether the (Beijing) Olympics will go as planned,” said Ben Shepard, senior research analyst at insurance investment advisor Argenta Private Capital. Analysts now estimate that the Summer Olympics are typically insured for up to $3 billion in total.
With the Winter Olympics set to open on Friday, insurers and game organizers see the risk of withdrawal of athletes due to COVID-19, as well as a build-up of Russian troops, tanks and artillery along the Ukrainian border. I’m holding Wars can cause countries to withdraw their teams from the competition. This could mean teams and broadcasters filing insurance claims for athlete no-show payments. “Looking at Beijing, the biggest concern will be political risk,” said Duncan Fraser, global practice leader for sports and entertainment at insurance broker Howden.
The International Olympic Committee (IOC) handles about $800 million in protection for each summer games, but the smaller winter games may require less compensation, sources said. Insurance against cancellations and risks such as riots and social unrest is also purchased by other stakeholders, including local organizing committees and larger national Olympic committees such as the United States. National Olympic Committees and Broadcasters.