When it comes to staging some of the world’s most exhilarating sports events, risk management planning is the unsung hero that ensures the show goes on.
Major sporting spectacles like Euro 2024 and the Olympics unite billions of fans worldwide but present formidable challenges for organisers.
From the unpredictability of extreme weather to the menace of cyber incidents, the meticulous planning and support of comprehensive insurance coverage play a pivotal role in safeguarding these global events.
This summer, Europe is in the spotlight, hosting two of the grandest sporting events in quick succession.
The UEFA Euro Championship football tournament commenced on June 14 in Germany and will be swiftly followed by the Olympic Games in Paris, running from July 26 to August 11, with the Paralympic Games concluding on September 8.
The Colossal Task of Hosting Mega Sports Events
Organizing an event like the Olympics or Euro 2024 is a monumental task requiring extensive investment in infrastructure and logistics.
Paris expects 15 million visitors for the Olympic Games, with 10,500 athletes from over 200 nations competing for glory. The sheer scale of these events means that billions will watch both the Olympics and the Euros on television and online.
The Olympic Games in Paris are projected to be the most significant sporting event ever organized in France. With ticket sales, TV rights, and sponsorship deals amassing millions, almost all of the €4.4 billion cost of running the event is privately funded.
Remarkably, 95% of the competition venues in Paris are either already built or temporary, ensuring long-term benefits for local communities post-games.
The Integral Role of Insurance
Given the immense financial stakes, insuring such events is crucial. Allianz, a key player in this domain, explains the rising insurance values tied to these grand events.
“Values associated with large sports events were already increasing before the Covid-19 pandemic,” says Jan Prechtl, Regional Head of Entertainment Insurance at Allianz Commercial. He adds that global audiences and inflation have further driven up insured values.
Mark Whayling, Global Product Lead, Entertainment at Allianz Commercial, emphasizes that without insurance support, organizing such large-scale international events would be impossible at the current scale.
Insurance covers a myriad of risks, from traditional property and motor coverages to liability and cyber insurance, providing essential protection for organizers, participants, and spectators.
The Show Must Go On
The risk of event cancellation remains the most significant challenge, with financial impacts running into hundreds of millions of Euros.
Prechtl notes that adverse weather, security threats, and public health concerns are prime reasons for cancellations.
Allianz France, for instance, insures major infrastructures like the Vélodrome de Saint-Quentin-en-Yvelines and provides coverage for various events, ensuring seamless operations.
Travel and ticket cancellation insurance for fans, medical insurance for athletes, and liability coverage for organizers are some of the many facets of insurance required to keep these events running smoothly.
A Collaborative Effort
As the official Worldwide Insurance Partner for the Olympic and Paralympic Games, Allianz works closely with the IOC and organizing committees to tailor insurance solutions.
Deanim Jadean, Global Technical Manager, explains that insuring such large events requires collaboration among many insurers to provide the necessary coverage levels.
Each Olympic Games presents unique risks, necessitating tailored insurance strategies. For Paris 2024, the urban character of the opening ceremony and sports competitions presents distinct challenges.
Future games, like LA28, will require considerations of the specific legal and liability landscapes.
Lessons from the Pandemic
The pandemic has profoundly impacted how organizers plan for future events. The Tokyo 2020 Olympics, held a year later with limited spectators, highlighted the need for robust contingency plans and insurance coverage for public health emergencies.
The experience of Tokyo 2020 has informed the risk management strategies for Paris 2024, ensuring preparedness for potential disruptions.
Addressing Security Risks
In the current global climate, security threats overshadow other risks for major events. France’s history of terrorist attacks and the high-profile nature of the Olympics necessitate rigorous security measures.
The country plans to deploy 45,000 security personnel and has contingency plans for relocating or scaling back the opening ceremony if needed. Insurers provide specialized coverage for terrorism-related incidents, civil unrest, and other geopolitical risks.
Cybersecurity Challenges
Cyber-attacks pose a real threat to major sporting events, with historical precedents like the disruption of the Pyeongchang 2018 opening ceremony.
As digital technology becomes integral to event operations, the risk of cyber incidents increases.
Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial, stresses the importance of cyber insurance to cover potential data breaches, network disruptions, and ransomware attacks.
Climate Change Considerations
Climate change introduces additional risks, with extreme weather events becoming more unpredictable.
Whayling notes that events can be affected by extreme heat, poor air quality from distant bushfires, and subsequent flooding from hard, dry ground.
Organisers must be prepared for all eventualities to ensure the safety and success of their events.
Risk management planning, supported by comprehensive insurance coverage, is crucial for the success of major sporting events like Euro 2024 and the Olympics.
From security and cyber threats to climate change and public health concerns, meticulous planning and collaboration among insurers ensure these global spectacles proceed without a hitch.
The Allianz Group is one of the world’s leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 746 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
** As of March 31, 2024.
Read more on the Allianz Commercial website