With the Olympics now just six months away, insurers are saying they face “mind-blowingly” large cancellation losses if the Summer Games do not take place as scheduled.
Much of Japan is now under a state of emergency in the third wave of its coronavirus outbreak.
Organizers last week played down doubts about whether the Games could happen, but without giving a guarantee, and the competition is likely to top the agenda when the International Olympic Committee’s executive board meets this week.
Clarity is needed soon
The torch relay is set to start in late March, with the Games officially starting on July 23.
Event insurers have had a tough year as a result of the pandemic, but canceling the Olympics would be “by far the largest” loss in the industry, one brokerage director said.
The I.O.C. earns billions from the Summer Olympics, and billion-dollar broadcast and sponsor deals are at risk. A big barrier to postponing is the cost of extending contracts for another year, The Associated Press reports.
Courtesy – Reuters