The cost of cancelling the London Olympic Games amounts to 5 billion USD

Munich Re has estimated that the cancellation of the London Olympic Games due to be held in early 2012 summer would cost the insurance business 5 billion USD. This estimate takes into account the lost earnings emanating from media and advertizing, in addition to third party liability. The revenues generated by this event are close to those generated by the last soccer World Cup held in South Africa. Floods following storms or terrorism top the list of cancellation causes. Munich Re’s exposure is estimated at nearly 440 million USD.