The involvement of an insurer in the Olympics typically begins when the International Olympic Committee (IOC) announces the winning bid city. Insurance coverages such as event cancellation, liability, property damage and others are required by various stakeholders to cover the enormous expenditure related to such an event.

There is big money at stake: advertising and broadcasting rights, infrastructure projects, multi-billion dollar investments of both the host country and the sponsors, the preparation and financial
commitment required from national sporting delegations, as well as the private travel expense of millions of visitors from all over the world.

The Beijing 2008 Summer Games cost $42.58 billion, the Sochi Winter Games in 2014 topped that at $49.96 billion. In comparison, Pyeongchang is small change at $13 billion, but insurance still needed to be in place years before.

Property policies cover venues, equipment and transport vehicles used to stage events. They are at risk from construction defects and fire, as well as theft and vandalism. Accommodating and moving the athletes, officials and spectators is also a massive challenge. There will be injuries and maybe even fatalities, as well as non personal injury claims.

Beyond that, insurance needs cascade downwards. Service providers, such as catering and security firms, would already have insurance as part of their business requirements, but each competing nation and some athletes may organize additional cover. For example, for travel and health, car hire and baggage and goods.

An Olympic bobsleigh has a price tag of a minimum of $30,000. Other specialized equipment also needs coverage. To get an edge on the Pyeongchang slopes, the Austrian team sent three Wintersteiger machines for ski sharpening and preparation well ahead of the Games. The total value is in excess of $120,000, so insurance covers shipping and use.

'It is fair to say that without insurance, there would be no Olympics,' Furtschegger asserts, 'For, without insurance, who would actually undertake the massive investment risks required to bring the Games to realization.'

Allianz SE published this content on 22 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 February 2018 10:26:03 UTC.

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