The 2004 Athens Olympics will be the first games to have cancellation cover after the International Olympic Committee (IOC) said it had secured $170m worth of coverage through its brokers Marsh.
It said similar coverage would be purchased for future summer and winter Olympics, including the Turin games in 2006, the Beijing games in 2008, and the Vancouver games in 2010.
The policy will cover the organising committee, the National Olympic Committee and the International Federations for losses in the event of the cancellation of the games due to terrorism or natural catastrophes, said IOC president Jacques Rogge.
The IOC said the move to put a risk management policy in place was initiated by Rogge soon after his election in 2001. At the time he indicated there was a need to protect the funding of the Olympic movement by building financial reserves and to take out insurance where necessary, said the IOC. Discussions on sourcing cover for the Olympics began in November 2002.
Rogge said: “Taking out a policy to manage the risk associated with one's core business is standard, prudent behaviour for any modern organisation. We are happy with the terms agreed which will support not only the IOC but also the National Olympic Committees and the International Federations.
The IOC has not revealed which insurers are providing the coverage, but, according to a report, sources have said that the London market, particularly Lloyd’s, has provided much of the capacity.
