The stage is set in Rio de Janeiro, Brazil for the 2016 Olympic Games from 5th to 21st August 2016. What has not been adequately provided for in the preparation for the event is ample prevention and adequate mechanism that would reduce the effect of the looming threats facing the game. The potential threats to the game are the Zika Virus, terrorism, and civil unrest.
In this light, the underwriters purported that any reason to halt the event will only reduce the financial gain of the organizers, it would not entirely leave them empty-handed.
Almost $2 billion has been used in insurance to cover the stakeholders which include organizers, broadcasters, International Olympic Committee among others.
In the list of potential threats to the game, Zika has been of higher concern because many high profile athletes had opted out of participation due to the fear of contracting the disease.
Their absence reduces the glamor of the event as this sets back the revenue, and most stakeholders had directed their insurers to indemnify them for the lost revenue. However, with the commencement of the games due in a fortnight, the insurance brokers and companies are already informing their clients of their inability to cover all loss attributable to Zika.
The insurer insisted they would prefer dealing with coverage of postponement or full-on cancellation of the tournament or a particular event rather than facing indemnity on individual cases.
Zika, a communicable disease, is covered under standard policies and clients exposed to its threats are advised to buy protection. Those Clients that have taken policy for the infectious disease many years back would be covered as the virus’ threat are not entirely known at that period, but anyone subscribing to it now would pay more. Taking the policy might even become impossible as the commencement of the Games is so close.
Indemnity becomes challenging if there is an outbreak during the Games.