Insurers Brace for Potential Risks at the Paris Olympics

As the Paris 2024 Olympics approach, insurers are on edge, grappling with the looming threats of militant attacks and AI-generated disruptions. The stakes are high, with the potential for event cancellations and millions in claims.

Insurers, having faced losses from the postponed Tokyo 2020 Olympics due to COVID-19, are now preparing for potential risks at the Paris Olympics, which run from July 26 to August 11, with the Paralympics following from August 28 to September 8.

The key players involved include German insurer Allianz, an official insurance partner for the games, and other insurers like Lloyd’s of London. Industry experts such as Kelly Maheu, Mark Breading, and Praveen Reddy have also weighed in on the importance of using tech and data for risk management.

The heightened concerns have surfaced amidst ongoing geopolitical tensions and recent events, including wars in Ukraine and Gaza, and upcoming elections in France.

The potential for militant attacks, particularly Islamist threats, and AI-based disruptions poses significant risks to the successful execution of the games. The Paris chief of police and other security officials have underscored these concerns, highlighting the importance of robust risk management and insurance coverage.

Insurers met with the International Olympic Committee (IOC) in Paris last month to discuss risk mitigation strategies. Effective use of data and technology is essential for MGAs and insurers to manage these risks and maintain carrier trust. APIs and real-time data sharing are critical tools in this effort.

The Bigger Picture 

The potential impact extends beyond just the event itself. An attack leading to loss of life, property damage, and business interruption could add billions to insurance losses. Moreover, AI-based attacks could disrupt ticketing, fraud prevention, and live broadcast feeds, further complicating the already tight event schedule.

As the world watches the Paris 2024 Olympics, the insurance industry must stay vigilant and proactive. By leveraging technology and data, insurers and MGAs can navigate these risks and ensure a secure and successful event.