Insurance dodges Olympic cancellation bullet
Jeff Holguin of the U.S. unloads his shotgun during a shooting practice ahead of the Beijing 2008 Olympic Games August 7, 2008. REUTERS/Ceerwan Aziz (CHINA) – BR1E4870F42DP
HONG KONG, July 13 (Reuters Breakingviews) – Japan is pressing ahead with the Olympics with less than two weeks left on the clock. That’s in spite of Tokyo entering a fresh state of emergency read more on Monday, and ample public opposition . There will be little economic benefit to speak of, given that almost all of the venues for the games will have no spectators physically present, so benefit to tourism-related sectors will be nil.
Other sectors can breathe a sigh of relief. Brand sponsors, for example, will still get exposure to millions of viewers watching from home. And while the decision to ban spectators might cost the global reinsurance sector $300 million to $400 million in reimbursements, according to ratings agency Fitch, they would have taken a far bigger hit had the Olympics been cancelled outright. However, there is one clear loser already: Prime Minister Yoshihide Suga, who has pushed the games on despite widespread resistance, has seen his popularity tank, and his political future is distinctly uninsured. (By Sharon Lam)
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Editing by Pete Sweeney and Katrina Hamlin
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