A year later than scheduled, the Summer Olympics of Tokyo 2020 was successfully completed in August 2021; against the backdrop of COVID-19, it was contested in largely empty stadia and against the will of many in the host nation – a very different setting than athletes would have perhaps expected and hoped for.
Tokyo 2020 Olympics
Without question, the Olympics provided a much-needed morale boost globally and left sports fans around the world with some indelible memories.
In the UK, we celebrated Tom Daley’s life-long quest for a gold medal whilst Mr & Mrs Kenny (Jason and Laura) added more gold to their already glittering cabinets! We also saw Adam Peaty swim to add another two gold medals to his collection, alongside countless other incredibly uplifting performances across a range of sports.
In total, the Great British team netted a whopping 65 medals of which 22 were gold! A fantastic achievement and one that gave the whole nation a reason to celebrate.
Insuring the Olympics…
Whilst the sport took centre stage, we must address the year delay and its implications for the insurance industry. Already reeling from escalating losses globally as event after event was cancelled, the jewel in the crown and perhaps the largest exposure surrounded the Olympics.
With cover bought years and Olympics cycles in advance, policies provided cover for infectious disease. It is likely that for the next Olympics – Paris 2024 – infectious disease cover will also be taken out. However, most policies now tend to exclude such cover as standard.
The Tokyo 2020 Olympics was insured for a total figure in the region of $2.5-2.6 billion*. With governing body, the IOC, covering investment in the host city, broadcasters, local organisers, hotels and hospitality, entertainment etc. (the list goes on), each of these elements would have had its own event cancellation policies in place.
A full cancellation of the Olympics would have crippled the insurance market and with losses prior to the Olympics already totaling an estimated $5-6 billion, and large carriers such as Swiss Re, Munich Re, Beazley etc. exposed for upwards of a reported $250 million each*, a full postponement would have had a detrimental and lasting impact on the whole insurance market.
An Olympic cancellation would truly have been the final nail in the coffin for many.
Insuring your event
At McClarrons Sport, we offer comprehensive Event Cancellation insurance solutions, whether you be hosting a sporting event or something else. If you would like to discuss your next event’s insurance with us, please contact our Account Director, Tom Landale, at tom.landale@mcclarroninsurance.com or on 07710 417127.
Sources:
*Local Olympics organisers face uninsured loss from spectator ban-sources – Reuters
