The coronavirus outbreak in Japan is likely to have only a “limited impact” on local insurers’ financial positions, according to Fitch Ratings.

Fitch says its analysis includes the possibility that the 2020 Tokyo Summer Olympics in July may be postponed.

“Even if the Tokyo Olympic Games are cancelled, any potentially significant losses would be borne by corporations in the hotel or meeting, incentive, conferencing and exhibition industry,” it says.

“The agency therefore thinks any net insured losses through event cancellation and business interruption insurance due to the cancellation of the Olympic Games will likely be limited.”

Most insurers in the country have exclusion clauses for “new” epidemics in policies for event cancellation and business interruption, limiting their exposure to potential claims losses.

Most Japanese companies are also reluctant to pay the high premiums insurers charge for covering epidemics.