What is needed to insure the Olympics?

The Paris 2024 Games, the largest and most ambitious sporting event ever held in France, were estimated to cost a total of €8.9 billion. The eye-watering amount included the cost of building and updating the venues, security and operational costs. Without proper insurance, an event of this scale would not be possible.

With the Paralympic Games wrapping up earlier this week, Eike Bürgel, global head of the Olympic and Paralympic program at Allianz (the official insurance partner of the Games) spoke to him. Insurance business Consider what it takes to insure a high-profile sporting event.

Comprehensive coverage for a global event

Insuring sporting mega-spectacles like Paris 2024 involves providing coverage for a wide range of risks, including physical damage to venues, third-party liability, cyber risks, terrorism and business interruption. However, Bürgel emphasized that there is no one-size-fits-all approach to insuring the Games, as solutions must be tailored to the geopolitical factors of each host country.

Bürgel explained: “In France, we have government-backed insurance pools for terrorism. In the US, where the next Summer Games will be held in Los Angeles in 2028, there is a very different liability and tort system. “

“It is a very collaborative consultative process and a close working relationship between Allianz, the International Olympic Committee, and the Paris Organizing Committee that thoroughly understands the risks and exposures and develops the appropriate wording.” ” Bergl continued.

For a major event like the Olympics, Allianz provided coverage across more than 10 different product categories. However, the firm did not shoulder this responsibility alone. When substantial financial exposures are at stake, risks are typically shared among different reinsurers through co-insurance programs. This mutual support ensures that the financial burden is spread, making it possible to cover a wide range of potential risks.

Navigating Cyber ​​Threats

The growing threat of cyber threats affects every aspect of modern life, and the Olympic Games are no exception. Previous Olympics, including PyeongChang 2018, Beijing 2008, London 2012, Rio 2016, and Tokyo 2020, have all faced various forms of cyber threats.

As the first Olympics to implement a fully electronic ticketing system, cybersecurity protocols were of particular importance at Paris 2024. Should threat actors successfully breach the Games’ systems, potential risks could include disrupted broadcasts, compromise of player and participant personal data, and scoreboard manipulation. and results system.

Reflecting on common strategies used to mitigate such cyber threats, Bürgel noted: “Training is essential to catch threats such as phishing schemes. Many organizers of sporting events are likely to They will also conduct ‘war game’ exercises to identify cyber scenarios and potential threats.

“While insurance can provide an additional layer of protection, preparedness and advanced business continuity and crisis management are key.”