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Global re/insurers face hefty claims if Coronavirus forces Olympics cancellation

The IOC takes out around $800 million of protection for each Summer Games, which covers most of the roughly $1 billion investment it makes in each host city. Insurance sources estimated it would pay a premium of about 2-3%, giving a bill of up to $24 million to insure the Tokyo event.

-Munich Re board member Torsten Jeworrek said on Friday it was a provider of cancellation insurance for Tokyo, for an amount in the hundreds of millions of euros.

-He would not say whether the figure was more or less than its 250 million euro exposure to the 2018 Winter Olympics or if the policy covered coronavirus, citing confidentiality.

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Catastrophe Bond prices signal Coronavirus nearing Pandemic Status

The bonds are structured so that their principal, or face value, is written down following outbreaks of certain diseases named as covered perils.

They were issued to raise funds for the World Bank’s Pandemic Emergency Financing Facility, which sends money to developing countries that need help tackling these diseases. To date, the pandemic securities have not been triggered.

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Coronavirus vaccine won’t be ready for a year, says US govt

The first vaccine trials were expected to begin in about two months and it would take a further three months to determine safety and efficacy which means the fastest possible time frame would still be upwards of 6-8 months before a breakthrough, Dr. Anthony S. Fauci, Director, National Institute of Allergy and Infectious Diseases, said at the White House briefing, with Trump looking on.

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Global recession likely if coronavirus becomes pandemic: Moody’s Analytics

“COVID-19 is battering the global economy in numerous ways. Chinese business travel and tourism has all but stopped; global airlines are not going to China and cruise lines are cancelling most Asia-Pacific itineraries. This is a huge problem for major travel destinations, including in the US, where some 3 million Chinese tourists visit each year,” Moody’s Analytics said.

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