Leigh Ann Rossi | Source

The local Tokyo Olympics organising committee is unlikely to get much of an insurance pay-out due to lost ticket sales from a ban on spectators, after using up much of its event cancellation policy on postponement costs last year, insurance sources say.

Insurers are facing a $2-3 billion loss if the Tokyo Olympics are cancelled this year, amounting to the largest ever claim in the global event cancellation market, brokers say.

The event cancellation insurance sector was hit hard by the pandemic, with billions of dollars in reported claims, and insurers have responded with dramatically higher rates and tighter capacity.