Editorial

Too high a price?

As of early June, Japan remains adamant that the Tokyo Summer Olympics will kick off as planned on July 23. In normal times, most sports nuts would rejoice. There’s nothing better than watching the best of the best battle it out on the global stage for the highest of sporting honors. But this year, the excitement is shrouded by a COVID-shaped cloud.

There’s a vast chorus of experts asking how the Summer Olympics can go ahead when much of Japan remains under a state of emergency due to COVID-19. How can Japan proceed with confidence, knowing that the sports extravaganza could turn into a COVID-19 superspreader event? And what will the cost of the Games be? Will it be calculated in Japanese yen or in the number of lives lost?

Sports, culture, music and art all play integral roles in healing communities after catastrophic events. Also understandable is the need to kickstart economies by reopening businesses, encouraging travel and getting back to ‘normal’ as quickly as possible. But we’re not in any position to rush. At a time when much of the world remains gripped in serious outbreaks of COVID-19, is the risk of running the Summer Olympics too great?

As a stakeholder in this huge event, is the insurance industry irresponsible in providing coverage and enabling the Tokyo Olympics to go ahead, with the knowledge that the pandemic is not yet under control in Japan or elsewhere around the world? With an ever-focused eye on environmental, social and governance issues, would it be more socially responsible to support cancellation of the Games?

Of course, there’s a lot of money at stake. Reuters reported in January that the event cancellation insurance market could face losses of $2 billion to $3 billion if the Tokyo Olympics are canceled. This would be the largest ever loss for the global event cancellation market, which has already taken a huge hit from the COVID-19 pandemic.

But again, this isn’t just about money. As things currently stand, the gamble with the Tokyo Olympics could be played out in human lives. Is that a risk anyone can put a price on?

If the Tokyo Olympics are canceled, it would be the largest ever loss for the global event cancellation market, which has already taken a huge hit from the COVID-19 pandemic

The team at Insurance Business America www.ibamag.com MAY 2017

EDITORIAL

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