Olympics cancellation would cost insurers £3bn - Munich Re

German reinsurer Munich Re has estimated that cancellation of the Olympics due to a terrorist attack or a natural disaster would cost insurers up to $5bn (£3bn) according to the Telegraph.

“The revenue exposures between the World Cup in Africa and the London Olympics are similar, so I would expect the overall cancellation exposure to be a similar amount – about $5bn,” the paper quoted Munich Re London underwriting manager Andrew Duxbury as saying.

Duxbury’s division has Olympics exposure of around £280m, the Telegraph said.

According to Munich Re, the total coverage includes costs and loss of revenue for firms such as advertisers and media companies, as well as employers’ and public liability insurance, However, it would not include cancellation or disruption caused by transport failure in London.