Paris Olympic Games 2024: Why Insurers Are Worried About Cancellations - Explained

The Olympics are as big a sporting stage as it gets. For any event of such scale, insurance becomes imperative and a number of players are employed to safeguard the expenses incurred. The Paris 2024 Games are no different. (More Sports News)

But days ahead of the start of the multi-sport extravaganza, insurers have reportedly voiced their concerns regarding militant attacks and/or artificial intelligence-generated fake images. Such incidents, they believe, could hamper the Paris Olympics, making cancellations and claims running up to millions of dollars a distinct possibility.

Causes For Insurers' Concern

The onset of coronavirus had led to insurers facing losses after the previous edition in Tokyo, which had to be postponed for a year due to the pandemic.

Since then, bloodshed in Ukraine and Gaza and a hung parliament in host nation France have caused fears of politically-spurred violence at major global events like the Olympics.

What Insurers Are Saying

German firm Allianz is the insurance partner for Paris 2024, in addition to other providers like the Lloyd's of London market. A Reuters report quotes insurers articulating their concerns about policing challenges and the threats of cyber-attacks and terrorism.

"We are all aware of the geopolitical situation the world is in. We are convinced that the IOC (International Olympic Committee), Paris 2024 and the national organising committees, together with the French authorities, are taking the right measures when it comes to challenges on the ground," the report quotes Eike Buergel, head of Allianz's Olympic and Paralympic programme, as saying.

The Paris chief of police had said in June that the likelihood of Islamist attacks are the top security worry for the Games. "It's such a large event ... in a very large city, which in itself is quite difficult to police," the report cites Andrew Duxbury, head of contingency at insurer Beazley, as saying.

In case a specific security risk is confirmed, France would move its opening ceremony from the River Seine. Meanwhile, a man was arrested in the French town of Saint-Etienne in May, suspected of plotting a terror attack in the name of Islamic State at the city's football stadium during the Olympic Games.

Such incidents "demonstrate that the threat against the Paris Olympics is real and ongoing," the report quotes Adam Carrier, head of consulting at crisis management consultancy AnotherDay, as stating.

And then there is the alarming possibility of artificial intelligence-based attacks. AI could be used to manipulate live broadcast feeds for spreading misinformation or committing fraud with the electronic ticketing system.

In the backdrop of all this, insurers met the International Olympic Council in Paris in June to discuss risk mitigation measures, two industry sources told Reuters.

With the French elections since resulting in a hung parliament, the political instability has only served to heighten the anxiety of authorities as well as insurers concerned.