By Carolyn Cohn, Alexander Hübner and Noor Zainab Hussain
LONDON (Reuters) – Insurers are facing millions of dollars in claims after a foiled attack forced the cancellation of three Taylor Swift concerts in Austria, although several providers will distribute the hit, two people involved in the insurance for her tour told Reuters .
The concerts in Vienna were canceled this week after a planned attack on the Ernst Happel Stadium. About 195,000 “Swifties” were expected, many traveling from abroad to see the pop superstar.
Barracuda Music, the concert organizer, said all tickets would be refunded within 10 days. She was not immediately available for comment about the insurance arrangements.
Swift is popular among insurers because she rarely cancels concerts, a third insurance source said. Her fame and success mean most specialist event cancellation insurers in London would be involved in covering her tour, one of the sources said. The sources declined to be named, citing client confidentiality.
Organizers of major sporting and entertainment events typically purchase event cancellation insurance, much of which is usually insured through the Lloyd’s of London market by a consortium of insurers.
A spokesman for Lloyd’s of London confirmed that event cancellation insurance is offered at Lloyd’s, but said he could not comment on specific policies.
Militant attacks are often excluded from event cancellation policies, but policyholders typically purchase additional coverage against these attacks or the threat of them. has been a known potential terrorist event,” said Tim Thornhill, managing director at estate agent Tysers.
Reuters was unable to determine the extent of coverage of the concerts. Marcos Alvarez, managing director for global financial institutions ratings at Morningstar DBRS, said losses from the cancellations could be in the tens of millions of dollars.
Alvarez said insurance losses would likely be limited by the fact that the concerts could be rescheduled.
The coverage was structured in such a way that insurers would not be shocked by a complete cancellation of the tour, said Andrew Colcomb, head of syndicate research at Argenta Private Capital, based on his analysis.
Swift’s Eras tour is estimated to generate nearly $2 billion in ticket sales.
Event cancellation insurance usually also covers delays, moving the event to another location, venue rental, artist wages and ticket sales.
The policy can be taken out by local or international organizers, and artists can add their own policies to ensure they get paid for the event if it is canceled, industry sources say. The stadium would also normally have event cancellation insurance, said Loretta Worters, vice president, media relations at the US Insurance Information Institute.
“Assuming this is an isolated event, we believe most insurers will continue to feel comfortable with their exposure to cancellation insurance products,” Alvarez said.
Going forward, he added: “Insurers could limit the available cover for terrorism cancellation insurance, given rising political tensions around the world.”
Leigh Ann Rossi, senior vice president of the sports and entertainment group at broker NFP, also said she didn’t think “this one-off concert claim would move the market.”
However, she added that “should this become a pattern or if something happens in Paris at the Olympics, it could impact the market.”
British police said on Thursday there was nothing to indicate the planned attack would have any impact on Swift’s return to London’s Wembley Stadium next week for her final five shows in Europe.
Any additional security for the concerts would pose “a significant challenge” for police, said Rich Phillips, head of crisis, resilience and reputation advice at insurance broker Marsh, especially as officials are on high alert after days of rioting in Britain that included racist attacks. aimed at Muslims and migrants.
