COVID 19 - The London Market Prepares

Over the last 48 hours, we've had a number of discussions with insurance professionals of all levels from across our membership in the London Market.

Companies are clearly preparing for Covid-19 from a business continuity, claims and client services perspective. The Government has suggested that up to one-fifth of UK workers could be away from the workplace at the peak of contagion.

Whilst we’re dealing with the emergency at home, the rising number of coronavirus cases in Japan is threatening the opening of the 2020 Summer Olympic Games in Tokyo – and insurers are facing potentially massive losses should the event be cancelled.

Japan’s government has already invested over US$12 billion to host the games, which is scheduled to open on July 24. But a spate of new coronavirus cases in Japan – with over 230 people infected so far – has prompted a senior member of the International Olympic Committee (IOC) to consider postponing the event, if not cancelling it altogether.

According to Reuters, analysts at financial services firm Jefferies have estimated the insured cost of the Tokyo Olympics at around US$2 billion – including television rights and sponsorship “plus US$600 million for hospitality.”

Back in the London Market, it’s business as usual for LMForums with a packed event schedule in 2020. If and when travel starts becoming difficult, we’ll work to ensure we continue to be a centre for knowledge exchange and networking. We are testing out new technology which will enable our members to participate in our practice groups and special events remotely, to ensure they continue to enjoy our sessions.

We will keep you updated through our website and social media channels.

*Osental, D. (2020). Insurers facing major losses if Tokyo Olympics is cancelled - Insurance Business. Available at: Insurance Business. [Accessed 4 Mar. 2020].