Ukraine in focus for Olympics insurers as Beijing Games kick off

By Noor Zainab Hussain and Carolyn Cohn

(Reuters) - The threat of war between Russia and Ukraine is the biggest risk for insurers offering coverage during the Beijing Winter Olympics as an outbreak of hostilities could force team withdrawals or appearance cancellations, industry sources say.

Olympic Games, top events on the sporting calendar, are always a major business opportunity, and a great headache for the commercial insurance industry.

Insurers paid out hundreds of millions of dollars to the local organising committee when the 2020 Tokyo Olympics was postponed by a year due to COVID-19, in order to recoup costs such as the rebooking of hotels and sports venues, industry sources say.

Now, with the Winter Olympics due to open on Friday, insurers and Games organisers see a risk of athletes' withdrawals due to COVID-19 and, with greater concern, are also watching the build-up of Russian troops, tanks and artillery along Ukraine's borders.

An outbreak of war could lead to countries withdrawing teams from the Games, which could mean teams or broadcasters filing insurance claims for payouts due to non-appearance of athletes.

"If we look at Beijing... the biggest concern would be political risk," said Duncan Fraser, global practice leader sport & entertainment at insurance broker Howden.

"What insurers will be looking at closely is the Ukraine situation."

At the Olympic Summer Games in Rio in 2016, the mosquito-borne Zika virus was a worry while war was also in focus for South Korea's Winter Games in 2018, but in the end both events took place without disruption.

"The risk and insurance industry will be keeping their fingers crossed that the (Beijing) Games proceed as planned," said Ben Sheppard, senior research