Militant attacks or AI-generated fake images could potentially derail one of the world's largest sporting events, risking event cancellations and millions of dollars in claims. Insurers faced such losses after the 2020 Tokyo Olympics were postponed for a year due to the COVID-19 pandemic.

The Insurance Journal released a report indicating that insurers are increasingly concerned about artificial intelligence's role in compromising the games' integrity and facilitating terrorist attacks. AI-generated images during the games are a significant concern, as they could confuse and mislead fans watching the events. 

Even more alarming is the possibility that AI could intercept live broadcast feeds to spread misinformation or disrupt the electronic ticketing system. This could potentially cause widespread chaos and undermine the event's security.

Insurance providers like Allianz, Beazley, and others, are also deeply concerned about the possibility of physical extremist attacks during the games. These apprehensions have been heightened by the recent arrest of a man in Saint-Etienne who was suspected of planning an attack in the name of Islamic State at the city's football stadium during the Olympics.

Ongoing conflicts in Gaza, Israel's participation in the games, and the Ukraine war have also heightened global tensions. With worldwide political elections, including in France, set to occur throughout the period, the international attention garnered by the Olympics makes it an attractive stage for those wishing to make a high-profile statement.

"We are all aware of the geopolitical situation the world is in. We are convinced that the IOC (International Olympic Committee), Paris 2024 and the national organising committees, together with the French authorities, are taking the right measures when it comes to challenges on the ground,” said Eike Buergel, head of Allianz's Olympic and Paralympic programme.

The IOC met with insurers in Paris last month to discuss risk mitigation measures, two industry sources told Reuters and told the news agency that risk management was an "essential" part of their work. 

The Olympic’s governing body buys its insurance several years in advance. It typically buys around $800 million in cover for each Olympic Games. While detailed information about the policy specifics isn't readily available, it is known to cover a broad range of risks including property damage, cybersecurity, travel, medical issues, terrorism combatting, and environmental damage.

The Paris Olympics’ organising committee also buys insurance, as does each participating country’s national Olympic committee. Broadcasters, sponsors and travel firms are likely to buy their cover around a year in advance, while hospitality providers may buy insurance closer to the event.