Insurance companies are worried that attacks by militants or fake images generated by artificial intelligence could disrupt the Paris Olympics, threatening competition cancellations and millions of dollars in claims.
Insurance companies suffered losses after the Tokyo 2020 Olympics were postponed for a year due to the Covid-19 pandemic, according to Reuters.
Since then, the war in Ukraine, the war on the Gaza Strip and several elections this year, including in France itself, have increased fears of the possibility of politically motivated violence during important world events.
The Olympic Games in Paris will be held this year from July 26 to August 11, and the Paralympic Games from August 28 to September 8.
German insurance company Allianz is a partner of the Games, while other insurers such as Lloyd’s of London also provide event-related insurance.
“We are all aware of the geopolitical situation the world is in,” Eke Bergel, head of the Allianz Olympic and Paralympic programme, told Reuters.
“We are convinced that the International Olympic Committee in Paris 2024, the organizing committees from countries around the world and the French authorities are taking appropriate measures to address the challenges on the ground,” he added.
“It’s a big event… in a very big city, and it’s very difficult for the police,” said Andrew Duxbury, head of emergency at insurance company Paisley.
Two IOC sources told Reuters that insurance companies met with the committee in Paris last month to discuss measures to mitigate the impact of risks.
The International Olympic Committee said in a statement emailed to Reuters that risk management is a “fundamental” part of the committee’s work to reduce the possibility of unforeseen events negatively impacting the Games.
Insurance industry sources said the Israeli team could be another flashpoint. Israel will take part in the games despite the ongoing war in the Gaza Strip.
An attack resulting in deaths, property damage and business interruption could “add a few billion” to the estimated $3 billion in insurance losses if the Tokyo Olympics were cancelled outright due to Covid-19, said Marcos Alvarez, managing director of insurance ratings at Morningstar.
France is preparing for the second round of parliamentary elections on July 7, leaving many businesses ready for protests that could lead to property damage.
Insurance industry sources said Olympic organizers would do their best to reschedule events if necessary, but that was not always easy given the tight schedule, leading to potential cancellations.
