Demand for insurance cancellation cover is continuing to rise in the run-up to the Athens 2004 Olympics, according to Ascot, the lead underwriter of the recently placed IOC Cancellation Policy.
However, Ascot voiced concerns that those who have so far not applied for such cover could be faced with substantial costs, which will continue to rise the closer to the event it is sought.
The Lloyd's underwriter highlighted the fact that cover is not only being sought by the organisers, but also by smaller entities such as sponsors and regional TV companies in an effort to protect their costs, expenses and equipment which might be at risk from terrorist attack.
Julian Barker, political risks and terrorism underwriter at Ascot, said: "Simple demand and supply comes into play with these types of events. For many insurers, exposure to cancellation needs to be balanced against the increase in levels of terrorism cover also being required during the showcase."
