Jefferies analysts have estimated the insured cost of the Games at $2 billion, including TV rights and sponsorship, plus $600 million for hospitality. However, delaying the Olympics is likely to cost insurers much less than a full cancellation as policies may not specifically cover a postponement.
“Cancellation insurance usually includes postponement as standard,” said Tim Thornhill, sales director, entertainment and sport, at Lloyd’s of London broker Tysers, who also said this might not always be the case. Tokyo 2020 organising committee chief executive Toshiro Muto said on Tuesday it was not clear who would pay the extra costs arising from the postponement. The cost of postponing the Games was not discussed by IOC chief Thomas Bach and Japanese prime minister Shinzo Abe on Tuesday, Bach said, adding: “this is about protecting lives”.