Travel insurance troubles at the Olympics

Back in January of this year, many believed that the 2021 Tokyo Olympic Games could face cancellation – an event that would have left insurers facing a US$2- to $3-billion loss. But officials remained firm that the games would go on, albeit in a very different capacity this year as many spectators would be unable to travel to Japan to watch the event.

Now, a new travel advisory from the US State Department and the US Centers for Disease Control and Prevention is urging American citizens against all travel to Japan due to a surge in Covid cases at the destination.

Just months before the Olympic Games are due to commence, travellers with plans to attend the games, as well as US Olympic athletes that are due to take part, could find themselves in a bit of a tricky spot.

Insurance Business Magazine has highlighted that the new travel advisories could have an impact on insurance rates for travellers, which could deter travellers that have yet to purchase cover. Olympic athletes will likely already have their individual IPMI cover sorted for their upcoming attendance at the games, but it is possible they could see some exclusions in cover related to Covid.

We’ve said it before, and we’ll say it again, anyone considering travelling to watch (or take part in) the Olympics this year will need some very comprehensive and flexible cancellation cover, including cancel for any reason cover and Covid-19-related medical cover. Especially as Japan has currently only fully vaccinated around 2.3 per cent of its population – an effort that could also be further hindered by its public’s low co-operation with the vaccination drive.