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How to remove the horrors of buying insurance

With its new digital solution, discovermarket is removing the horrors of buying insurance. Now, ticketing companies can offer event producer insurance seamlessly through their platform.

It’s Halloween, spooky creatures lurk around every corner. But for event producers, the real fear isn’t ghosts or goblins. In addition to the usual concerns about whether their event will be a success, their worst nightmare is the idea of a costly accident at their event, for which they would be liable.

Though insurance already exists to protect such risks, our review of event producer insurance around the world reveals that in most cases, finding and buying insurance is a bit of a horror-show.

First, even though it’s possible to find event liability insurance online, it’s hard to understand whether what you’re being offered actually covers what you need. Then if you do want to purchase it, in most countries you can’t set up this insurance online, making you feel like a zombie for even trying. Insurance brokers can help but they rarely integrate into the event planning experience.

discovermarket’s embedded insurance solution allows ticketing platforms to offer event cover effortlessly embedded into their systems

The result is that many small or medium-sized event producers don’t take out the insurance they need. Instead, they take on the risk that something at their event might just go “Bump in the Night”.

But what if someone could reverse this curse? That’s where ticketing companies come in, with the help of discovermarket. discovermarket’s embedded insurance solution allows ticketing platforms to offer event cover effortlessly embedded into their systems, adding value for producers and generating extra income at the same time.

Here’s how it works: event producers get a clear, relevant insurance offer right when they are planning their event. They can easily understand their coverage needs, get instant pricing and secure protection – all without leaving the ticketing platform. No more complicated forms or long processes – just a few clicks.

Ticketing platforms benefit too. discovermarket’s solution gives them a new revenue stream, seamlessly integrated into their platform. Plus, with a one-stop-shop for managing their whole insurance programme, platforms can deliver more value to event producers, strengthening relationships without any added hassle.

So, this Halloween, isn’t it time for you to make insurance less of a trick and more of a treat?

 


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Indie fests fear financial impact of severe weather

Organisers from Pohoda Festival (SK), Art Rock (FR) and InMusic (HR) have discussed the perils of maintaining independent festivals in the current climate.

“Unexpected things happen all the time,” Ivana Jelača, programming director for InMusic, told delegates at the recent SHIP conference in Croatia.

“No one predicted the pandemic. No one predicted a war in Europe in the 21st century. Organising a festival is a year-long job and things can dramatically change in that time. There are a lot of factors at play such as political factors, social factors, health and safety factors, weather factors and climate factors. There are a lot more dangers that have appeared in recent years.”

A primary danger for these organisers is inclement weather, as well as the resulting hike in insurance premiums.

Pohoda booking manager Barbora Bodnárová discussed the most recent edition of the three-day festival in July, which was curtailed after a thunderstorm caused a large tent stage to collapse and injure 29 people.

“Weather is getting more and more severe and you never know what is going to happen”

“I have never experienced such a storm [as the one this year] and we have storms at the festival almost every year and ways to deal with them,” said Bodnárová. “But we were in a situation where you couldn’t do anything. The policy we have in place wasn’t applicable for 20 minutes because you just had to take care of yourself and the people around you.”

“Weather is getting more and more severe and you never know what is going to happen. We just need to make sure we prepare ourselves the best we can in advance and assess it year by year.”

Though the Slovakian festival doesn’t have insurance for cancellation or inclement weather, it does have some cover.

“We have materials and structures insurance,” said Bodnárová. “Fortunately, we had a really good policy that was not that expensive… though I don’t think it’s going to be [that cheap] anymore.”

InMusic’s Jelača says she’s seen insurance fees for inclement weather “go through the roof” in recent years and points out that it’s a “security issue as well as a very big financial issue”.

“Insurance companies say that they will stop covering climate-related events because it’s becoming systematic and it’s not economically viable for them”

Carol Meyer, director of the French non-profit festival Art Rock, reiterates the point, adding that the cost of a severe weather event could end the long-running festival.

“Insurance is a huge issue in France,” she said. “Now, we hear from the insurance companies that they will stop covering climate-related events because it’s becoming systematic and it’s not economically viable for them. This is a real danger because if what happens at Pohoda happens and you’re not covered, you can kill a festival that is 42 years old.”

Bodnárová says that Pohoda is still weighing up the financial impact of the cancelled 2024 festival.

“It’s a slow process,” she said. “Many people are waiting for their money. We haven’t yet made a decision on whether to return a portion of the admission fee to those who would ask. We paid most of the artists their full fees, though some were able to settle for lower fees.”

Even without severe weather events and unaffordable insurance premiums, festivals are still struggling to balance the books.

“We are an independent festival and we’d like to stay independent”

“We almost never break even and we still need to find the ground after Covid,” says Bodnárová. “Finances are the number one concern for us as we are an independent festival and we’d like to stay independent. Plus, we need to attract younger generations so we can’t just keep raising the ticket prices.”

Meyer says that since Covid, Art Rock has to sell out to break even, and that finances are exacerbated by the concentration of major companies in France.

“Live Nation or AEG have relationships with the big artists and own the venues, the ticketing, and now they own festivals,” she said. “They can afford to lose money because the festival is a showcase.”

Croatia’s InMusic has also had its fair share of financial difficulties, some of which caused organisers to pull the plug on the 2023 edition.

Looking to the future, Jelača urged live music fans to support homegrown events and venues.

“Stick by your smaller events,” she said. “Stick by your local pubs. Stick by these grassroots movements because they do, in turn, give you bigger festivals or bigger events that will gather momentum.”

 


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Promoter Béchir counts cost of P!nk cancellation

TAKK Entertainment’s Andre Béchir has spoken out after P!nk cancelled her Switzerland concert at short notice over health concerns.

The US superstar was due to perform at Bern’s Wankdorf Stadium last night (3 July), promoted by TAKK, as part of the European leg of her record-setting Summer Carnival Tour, but announced the day before that she would no longer be able to perform.

“I am so sorry that I have had to cancel my show in Bern,” she said on Instagram. “I do everything I can to ensure I can perform for you every night, but after consultation with my doctor and exploring all options available, I’ve been advised that I’m unable to continue with the show tomorrow.

“I was looking forward to being with you and making memories with you and sharing our show with you and am so disappointed that we have to cancel.”

The concert will not be rescheduled, with all tickets to be refunded. And due to the lateness of the cancellation, Béchir indicates the amount not covered by insurance is in the six-figure range.

“We have insurance for such cases, but it certainly won’t cover all the costs,” Béchir tells Berner Zeitung. “We will now renegotiate with all partners. But we will be left with a very red number.

“If she can, she will perform. But her health comes first”

“If the concert had been cancelled a few days earlier, it would have been much cheaper.”

Nevertheless, the veteran promoter acknowledges that P!nk would not have cancelled without good reason. “If she can, she will perform. But her health comes first,” he notes, as per Nau.

Béchir leads CTS Eventim-backed TAKK ab Entertainment AG, which was established last year, alongside TAKK Productions founder Sebastien Vuignier and IQ New Bosses alumnus Théo Quiblier. Béchir’s abc Production was amalgamated with Gadget and Wepromote by CTS shortly before the pandemic hit.

P!nk’s cancellation marked the second time in three years that a TAKK-promoted gig at the Bern stadium has been axed at the 11th hour. The Rolling Stones were forced to pull out of their June 2022 show at the venue after Mick Jagger tested positive for Covid-19. But Béchir insists there are no hard feelings towards the city.

“We are still on very good terms with Bern,” he adds. “Especially with the authorities, such as security director Reto Nause and those responsible at the Wankdorf Stadium. Everyone involved was very understanding about the cancellation. We have a very cooperative relationship.”

The Summer Carnival Tour is due to resume in Denmark this Saturday at Copenhagen’s Parken Stadium.

 


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Post-election: A reflection on America’s future

As the United States approaches yet another critical election, the potential for civil unrest looms large regardless of whether the Republican candidate, Donald Trump, or the Democratic incumbent, Joe Biden, secures victory. The nation’s current political climate, characterised by intense polarisation and deep-seated mistrust, provides fertile ground for significant disturbances post-election.

The precedent set by the Jan 6th insurrection could evolve into a wider issue even if incarceration doesn’t become a reality for the former POTUS Donald Trump. Understanding the likelihood and potential spread of such unrest, as well as its implications for public life and events, is crucial for anticipating and preparing for the days ahead.

Polarisation and its consequences

The American political landscape has grown increasingly fractured over the past few years. Social media, partisan news outlets, and political rhetoric have all contributed to a society where ideological divides run deep. In this context, the outcome of the 2024 presidential election could act as a catalyst for widespread civil disturbance.

If Donald Trump wins, his supporters may feel vindicated, but those who oppose him – many of whom view his presidency as a threat to democracy – might resort to protests and civil disobedience. Conversely, a Joe Biden victory could provoke Trump loyalists, who might perceive the result as illegitimate yet again, especially in light of debunked claims around election integrity.

Likelihood of riots and civil disturbance

The potential for riots and civil disturbances following the election is high. Historically, the US has witnessed significant unrest in response to contentious political events, such as the 2020 Black Lives Matter protests and the January 6 Capitol riot. These events underscore the capacity for rapid mobilisation and the eruption of violence. There is even the prospect, with a Trump win, of martial law.

Major cities like Washington DC, New York, Los Angeles, and Chicago are likely epicentres for demonstrations. However, the spread of unrest could extend far beyond these urban centres. The proliferation of social media allows for the rapid dissemination of calls to action, enabling protests and disturbances to spring up in smaller towns and rural areas nationwide.

“Event organisers may face increased pressure to enhance security measures, potentially resulting in higher costs and logistical hurdles”

Implications for mass public gatherings

The prospect of widespread unrest poses significant challenges for mass public gatherings, including concerts and other large-scale events. Event organisers may face increased pressure to enhance security measures, potentially resulting in higher costs and logistical hurdles. Moreover, the fear of violence could deter attendees, leading to lower turnout and financial losses for the entertainment industry.

In addition to heightened security concerns, local governments may impose restrictions or outright bans on large gatherings to prevent potential flashpoints for unrest. This could lead to cancellations or postponements of concerts, sports events, and other public gatherings, impacting not only the entertainment sector but also the broader economy.

Preparing for the future

Given the high stakes of the upcoming election and the potential for significant civil unrest, it is imperative that local and federal authorities, as well as private organisations, prepare accordingly. This includes bolstering security protocols, facilitating dialogue between opposing groups to reduce tensions, and ensuring that law enforcement is prepared to handle potential disturbances with a focus on de-escalation and protecting civil liberties.

In the long term, addressing the root causes of political and social discontent – such as economic inequality, racial injustice, and the erosion of trust in institutions—will be essential to mitigating the risk of future unrest. In the immediate term, the entertainment industry should reckon with a clear need to get ahead of these issues and investigate the possibility of transferring the risk of business interruption and event cancellation to the insurance industry. Another route of course is to deal with the appendices in contracts with agents, venues and promoters contracts with a risk management lens. Taking advice on this should fall to brokers in the space with a special understanding of the market and the issues.

Conclusion

The likelihood of riots, civil disturbance, and unrest in the US following the 2024 presidential election is significant, regardless of whether Donald Trump or Joe Biden emerges victorious. The potential for such unrest to spread across the country, affecting not just the nation’s capital but also smaller communities, is real and warrants serious consideration. For mass public gatherings, including concerts, this climate of uncertainty necessitates enhanced security and contingency planning. Reviewing business insurance arrangements and contractual force majeure clauses and appendices is essential. As America stands at this crossroads, the actions taken today will shape the ability of the public entertainment industries ability to navigate the challenges of tomorrow.

Matthew Meredith is CEO of LMP Group Entertainment Insurance

 


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Covid pandemic – once in a generation?

Just a few short years ago a global pandemic would have seemed to be something which could only happen in a Stephen King novel, or in science fiction – The Stand, or 28 Days perhaps. The ‘Spanish Flu’ epidemic of 1918/20 notwithstanding, the thought of a virus today bringing the world to a halt, resulting in the deaths of millions of people would have seemed incomprehensible, but the warning signs were already there…

There were some near misses, most recently SARS in 2002 and Avian Flu in 2013, but the effects of these outbreaks were relatively contained, and anyone warning of a global pandemic was largely seen as a conspiracy theorist or worse.

The smart money now is on another pandemic happening sooner, rather than later. Covid is not expected to be a once in a generation occurrence, but, and it is a very BIG but – no-one can predict when or how it is likely to occur, although some studies suggest that there is a 30% chance that another pandemic will hit within the next 10 years. This shouldn’t be taken that we have 10 years to prepare ourselves for the next one as it could occur at any time – in 2024 alone, although not widely reported, there have been outbreaks which could quite easily have escalated very quickly, particularly one outbreak of Avian Flu. Fortunately these were controlled.

The live entertainment business fell off a cliff for a period of time, and it is great testament to all of the people in that industry that the business has recovered incredibly well – pre-Covid annual global live music revenues were $28.56 billion, in 2023 revenues were $28.86 billion, with 2024 expected to be even stronger.

As a direct result of the pandemic, insurance losses are estimated to be $44 billion, which makes the pandemic the third largest insurance loss ever, after 9/11 and Hurricane Katrina. Total losses, including uninsured, are calculated to be in the $trillions. It will come as no surprise that insurance companies, realising the sheer magnitude of their losses, retreated to lick their wounds, then applied huge rate hikes, and exclusions to coverage for almost anything Covid-related.

“If an insurance policy provides cover for the non-appearance of an artist due to illness, why should Covid continue to be excluded?”

Non-Appearance insurance and Event Cancellation insurance are essential for savvy promoters, managers, artists and almost every business involved in the staging of live events. So much investment, or potential revenue could be riding on a tour, or even one show – the values can be staggering – the Taylor Swift tour grossed over $1 billion. But since Covid, everyone has had to accept that insurance for this risk – the one that got up and punched the industry on the nose so badly that for some, it was a knock out blow – is one that they have to shoulder themselves. Should insurers now be doing more to offer protection for this?

Well, yes actually, and there are some extremely innovative solutions available now using parametrics, but these solutions really offer balance sheet protection for major corporations rather than for a show or a tour, and the cost is serious – minimum premiums are at least $100k, if not more.

Covid is now part of our lives – most of us consider it to be akin to flu, and if an insurance policy provides cover for the non-appearance of an artist due to illness, why should Covid continue to be excluded?

We’re making headway. Some of the insurers we work with have agreed tentatively to offer cover when an artist cancels a show because they’re suffering from Covid, but there are limitations – the number of shows which can be affected is limited, as is the monetary amount.

It’s not a total solution – that is a very long way off, but it’s a step forward, and every step forward is a step in the right direction for the industry.

lmp-insurance.com/ 

 


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Metallica’s Covid insurance lawsuit rejected

California’s court of appeals has dismissed Metallica’s lawsuit demanding more than $3 million (€2.75m) in losses for concerts cancelled due to the pandemic.

The band sued Lloyd’s of London over six axed South American dates in 2020, saying they had acquired a standard cancellation, abandonment and non-appearance insurance policy to cover their losses if any of the tour was postponed or cancelled.

But Justice Maria Stratton ruled the shows were not covered by Metallica’s insurance policy because of an exclusion in the contract for any losses stemming from “communicable diseases”, reports Billboard.

The group had argued the case should have gone to trial, as a jury could have decided the gigs were cancelled for non-Covid reasons. But Stratton, who bizarrely quoted Taylor Swift in her ruling, said it was “absurd to think that government closures were not the result of Covid-19″.

“To paraphrase Taylor Swift, ‘We were there. We remember it all too well’”

“To paraphrase Taylor Swift, ‘We were there. We remember it all too well,’” she wrote. “There was no vaccine against Covid-19 in March 2020 and no drugs to treat it. Ventilators were in short supply. N-95 masks were all but non-existent. Patients were being treated in tents in hospital parking lots.

“The mortality rate of Covid-19 was unknown, but to give just one example of the potential fatality rate, by late March, 2020, New York City was using refrigerated trucks as temporary morgues. People were terrified.”

Lloyd’s has not commented on the lawsuit, except to point out that it is not an insurance company, but rather oversees and regulates a market of independent insurers.

Meanwhile, a lawsuit filed by Live Nation in 2021 against insurer Factory Mutual for failing to cover its “unprecedented” losses as a result of the concert business shutdown, is still pending.

 


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The Touring Business Handbook 2024 out now

The Touring Business Handbook, a brand-new resource produced by IQ in association with Centtrip, is out now.

The first edition of the handbook features a wealth of advice and information from specialists in insurance, law, visas & immigration, accountancy & tax, performance royalties and currency exchange.

“With thousands of tours heading out each year, IQ wanted to produce a single publication, updated every year, containing as much practical information as possible to help artists and their teams as they plan to cross borders,” say editors Francine Gorman and Eamonn Forde.

“When we started planning this first edition of the Touring Business Handbook, it was hugely encouraging that so many of the professionals we approached said the same thing – that this was something sorely missing from the desks of those planning, budgeting, and building tours. So in this first edition, we’ve invited contributions from many of the world’s top experts, who have kindly taken time to put pen to paper.”

Contributors include Blacks Solicitors, Bullocks Touring, MSE Business Management, Viva La Visa, PACE Rights Management, Voly Group, Miller Insurance, International Theatre Institute, Schickhardt Rechtsanwälte and Russells.

Higginbotham Insurance Agency, CC Young & Co, All Arts Tax Advisers, mgr Weston Kay, International Theatre Institute, T&S Immigration Services, Gelfand Rennert & Feldman, Tysers Live, SRLV and Centtrip have also lent their expertise.

The Touring Business Handbook is available in print, digitally, and on this dedicated year-round mini-site. To purchase a print copy of the report, get in touch.

A preview version of The Touring Business Handbook 2024 is below.

 


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UK gov-backed insurance scheme paid out only once

The UK government-backed insurance scheme for live events paid out just one claim of £180,500, while generating almost £6 million in premiums, according to the Financial Times.

Launched in September 2021, the £800m Live Events Reinsurance Scheme was designed to cover costs incurred if an event had to be cancelled, postponed, relocated or abandoned due to a government-imposed lockdown in response to Covid-19.

It did not, however, payout if a festival needed to reduce capacity or cancel due to restrictions being reintroduced. Nor did it cover an event cancelled due to an artist or production staff catching Covid.

The year-long programme collected £5.9m premiums to cover 169 events and paid out to just one – Trick Scotland, an electronic music festival that was cancelled because the venue was needed as a vaccination centre. These details were published by the Treasury in response to a freedom of information request by the FT.

The live industry previously expressed concerns about the “extremely limited scope” of the scheme, with one promoter even dismissing it as “a joke”.

Umbrella body LIVE (Live music Industry Venues and Entertainment) today (24 April) told IQ it has failed to find a member that has used the scheme.

“Despite government’s best efforts, the reinsurance scheme was never right for our industry,” says Jon Collins, CEO of LIVE. “It was expensive, arrived too late and, crucially for a scheme to give confidence during Covid, did not cover for cancellation due to an artist having Covid.

“The reinsurance scheme was never right for our industry”

“Festival organisers moved mountains to put on safe, vibrant and successful events last year and are planning for a similarly strong summer of live music in 2023. With ongoing supply chain, energy and cost challenges and pressure on our audience’s disposable income, LIVE would ask that the government reallocate the huge underspend on this scheme to support artists, festivals and the public through targeted funding and a return to 5% VAT.”

IQ has reached out to the Department for Culture, Media and Sport (DCMS) for comment on how the £6 million in premiums will be spent.

The Live Events Reinsurance Scheme, a partnership between the government and the Lloyd’s of London insurance market, was available to purchase alongside standard commercial events insurance for an additional premium.

To be eligible, event organisers had to purchase the relevant cover from participating insurers within the scheme, including Arch, Beazley, Dale, Hiscox and Munich Re.

Premium was set at 5% of the total value of insured costs (plus Insurance Premium Tax) and claims were subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.

If events had to cancel, organisers will pay a pre-agreed excess and the government and insurers have agreed on a risk share per claim. This would start with the government paying 95% and insurers 5%, progressing to them covering 97% and 3%, respectively, and finally government covering 100% of costs. The split depends on the losses incurred by the insurer from the scheme to date.

At the time, culture secretary Oliver Dowden said the scheme would give organisers “the confidence they need to plan for a brighter future”.

 


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Take Cover: The changing landscape of insurance

If these “unprecedented times” have proved anything, it’s that a robust insurance plan can be the difference between survival and extinction for many in the live music business. And while the industry is slowly but surely beginning to resemble its former self, the scars of the pandemic run deep.

“We had huge claims at the start of the pandemic, which led to a lot of change within the underwriting market,” says Tim Thornhill of specialist brokers Tysers Insurance. “Some insurers increased their rates, and many stepped out and no longer wanted to provide cover for any type of event cancellation or non-appearance insurance at all. We’ve seen that ongoing since live music has returned.”

Indeed, salvation came at a cost: insurers globally reportedly lost more than £8bn in the first year of Covid-19 – £2.6bn of which was incurred by Lloyds of London alone. A number of stopgap government schemes, meanwhile, were introduced around the globe in a bid to get the battered touring scene back on its feet, to varying degrees of success.

As a result, 2023’s new normal is that insurance firms are still currently unwilling to insure against coronavirus.

“We had huge claims at the start of the pandemic, which led to a lot of change within the underwriting market”

“We have seen more enquiries than ever,” says Steven Howell of Media & Music Insurance Brokers (MIB). “Some contingency underwriters have closed for business following large losses, some new markets have entered the space, and all underwriters have amended the policy wordings to exclude Covid and other communicable diseases.”

Furthermore, Howell argues it is no longer a question of how many insurers will offer cover but more of how much cover they will offer.

“Pre-pandemic, many underwriters were happy to take the whole risk or a major percentage of the risk for a large festival or tour, they now wish to limit their exposure for any one event by taking a smaller percentage of the risk,” he continues. “This means we need to source two, three, or four more markets to cover the same event as underwriters seek to spread their risk.”

“Due to losses in the billions, the landscape has changed,” says Charlie Connell, executive director of entertainment for international insurance group Howden. “Insurers are less willing to take on such high levels of exposure and so the capacity for larger events and tours has diminished greatly.

“The breadth of cover has also decreased with insurers extremely concerned of another systemic event causing great losses in the market, which in turn could affect people’s jobs, and even to the point where music insurance being available at all could be in jeopardy.”

“Due to losses in the billions, the landscape has changed”

In Germany, Christian Raith, managing director at erpam GmbH, says, “From our point of view, there are currently few challenges in getting risks covered in the market. Despite the large losses caused by the pandemic, there is sufficient capacity in the German market. Of course, there is still the exclusion of pandemics or Covid, but I think every event organiser understands that.”

Martin Goebbels of Miller Insurance suggests rising premiums could tempt some companies back into the market. However, he points out that prices were already on the increase pre-2020 since “losses on cancellation insurance had been huge for a number of years.”

“Prices are still less than probably 20 years ago and an awful lot less than 10 or 15 years before that, so they’re not at an all-time high,” he says. “But obviously they are nudging back up because of a number of factors, not principally Covid – the weather situation, globally, is having quite an impact on insurers. And not just bad weather but actually excessively hot weather in recent times.”

“It’s certainly tougher than it was three years ago, mainly due to the limited [number] of insurers. We hope some come back in, but they’ll only come back in if the price is right.”

“The weather situation, globally, is having quite an impact on insurers”

Raith comments, “We are already noticing that the market is very soft again and we have been able to give premiums to customers in isolated cases that are not far from the old premiums. This is due to the large capacity, of course, but also to the fact that we have never had so many insurers on the market in over 30 years as we do today. But many big players are also getting on a bit, so premiums are a little higher there, but that remains understandable.”

Elsewhere in Germany, independent insurance broker vR&S has specialised teams who consult promoters, artists, and venues around the globe in terms of insurance and risk management.

“In 2020, the insurers paid out a huge [number] of claims on policies where Covid was deemed to be insured, so as everyone can imagine, the whole market was very negative in terms of premium income related to the losses paid out,” says the Hamburg-headquartered firm’s CEO Johannes v. Rauchhaupt.

“On the other hand, only a [small] number of risks were placed during this time, so insurers had nearly zero income. Generally speaking, after the pandemic, insurers had to gain more income from their business, so they were forced to generally increase rates.”

“There have been two major changes since Covid: one is increased premium level, the second is less capacity. Insurers are more willing to underwrite vanilla risks than the shows [that] tend to come with a higher risk.”

“There have been two major changes since Covid: one is increased premium level, the second is less capacity”

Nevertheless, vR&S live entertainment broker Julian Wagner predicts that – as has been seen with terrorism cover in the past – stances on providing insurance for Covid will soften over time.

“After the pandemic outbreak, insurers reacted very quickly to the situation and revised the wordings or the terms and conditions – not only the exclusion for pandemics but also for cyber risks or similar avoidable major loss risks,” says Wagner. “We saw this after 9/11 as well. Terrorism was a risk that was considered to be ‘never insurable again.’ But there, too, after a reasonable period of time, insurers rowed back.”

“At the beginning of the pandemic, everyone was very afraid of the situation, and now we see on the market that the first insurers are slowly taking over attempts to insure corona risks again. In the future – and I am sure of this – Corona risks [will be able to] be insured normally, perhaps with a surcharge.”

“In the future – and I am sure of this – Corona risks will be insured normally”

As is well documented, the post-pandemic return to touring has been blighted by a slew of tour cancellations for one reason or another.

“Anything can happen to a tour,” reflects Tysers’ Thornhill. “They can be cancelled because of illness to the artist, adverse weather, strikes, [which are] captured within all risk policies, with exclusions for things like cyber and communicable disease.”

Howden’s Connell notes that the business has experienced “sizeable losses in the non-appearance and cancellation space” due to artist illness or adverse weather, which he says highlights “the validity of the insurance products available beyond Covid.”

Miller’s Goebbels believes the rise in cancellations has acted as a further deterrent for insurers getting back into live music.

“They don’t see it as an attractive proposition,” he contends. “Long gone are the days where insurers saw the music business as glittery fun; they are a business like everybody else, and they’ve got to make profits. If there’s suddenly an increase in show cancellations for whatever reason, they have to look at it very carefully.”

“Long gone are the days where insurers saw the music business as glittery fun”

“In some cases, insurers are applying deductibles to tours, a one-show deductible would mean that in the event of an artist missing one show there would be no cover,” reports MIB’s Howell. “In the event they miss two or more shows, then the claim on the policy would be from the second missed show onwards. In all cases, insurers are asking for more information upfront in regard to previous cancellations, illnesses, and pre-existing conditions.”

Additional complications arise from the age of some of the artists hitting the road, particularly those in the autumn of their career.

“Many artists are still touring into their 70s and even 80s these days, and that’s a tricky one for insurers,” says Goebbels. “When you say, ‘I’ve got a band of 75 year olds going on a world tour for nine months,’ insurers are going to want to know an awful lot of medical information. Sometimes, the band push back and say, ‘It’s confidential,’ and insurers’ attitude is, ‘If you don’t want to tell us, then you can’t expect us to insure it.’”

“Not only age increases the likelihood of a claim, we have [also] seen many cancellations [that] are caused by mental illnesses in the last year,” offers Rauchhaupt. “Moreover, climate change obviously leads to more unforeseeable weather conditions across the world. Adverse weather remains the biggest risk for outdoor events.”

“Not only age increases the likelihood of a claim, we have [also] seen many cancellations [that] are caused by mental illnesses”

Rauchhaupt advises that it’s worth having a good broker by your side to make sure the risks you want to insure against are fully covered in the policy being taken out. “You wouldn’t go to a judge without a lawyer or wouldn’t pay your taxes without a good consultant – and the same applies to insurance.” he insists.

“We’d always encourage them to speak to us as early as possible, particularly on things like rates,” says Thornhill. “If you get in there early, then often it can be cheap. Also, it’s possible to declare your shows on a minimum deposit basis. Any adjustments can be made for activity later in the year.”

“It saves the time and hassle of dealing with financial administration when their time is better spent in the run up to an event in delivering the best service to the participants and the gig-goers. If they get the admin done early, it could be financially beneficial, but it’s certainly going to be time beneficial.”

“Speak to a specialist broker as early as possible to allow time to approach a number of markets and obtain the best terms,” concurs Connell. “Look at the option of an annual policy rather than one-off event policies, as this may be more economical. Check the contracts and only insure for the risks that you are exposed to. For instance, if your contract says that you do not pay the artist if they fail to perform, then you may not need to include the artist’s guarantee in your insured costs.”

“You wouldn’t go to a judge without a lawyer or wouldn’t pay your taxes without a good consultant – and the same applies to insurance”

Of all the misconceptions about the insurance industry, there is one issue in particular that everyone is keen to set straight.

“One general thing I’ve heard a lot in the last years is that insurers aren’t paying out when it comes to the moment where they need to,” stresses Rauchhaupt. “I think Covid showed that this is not true. We have handled more than 1,000 cancellations in 2020, and none of them went to court.”

“Most insurers are happy to pay claims as they have to prove to the regulators that the policies they provide are fit for purpose,” says Howell. “If the policies provided never paid out, then they would get in trouble with the regulators and ultimately face fines or closure. At the same time, they also have to meet internal checks to ensure that the policy triggers and the quantum claimed is correct, and this is not always straightforward and will involve a third-party loss adjuster.”

At erpam, MD Raith notes, “We sometimes see that brokers, due to their networking with large corporations such as Live Nation, DEAG, Eventim, etc., have problems in making favourable offers. After all, the broker’s main client should feel that he is getting the best premiums.”

“But, especially in framework agreements, all eventualities have to be priced in, and thus these are often worse premiums, but also conditions. Fortunately, we are independent of these groups and can therefore agree on an individual premium with each client. This sometimes also has a positive effect on the conditions.”

“The broker’s main client should feel that he is getting the best premiums”

“The product is still extremely reliable and caters for a wide range of risks that are taken when putting on an event,” adds Connell. “Especially as brokers, we are here for the clients, and we work on behalf of the clients and not the insurers, so engaging with us will hopefully get the results that clients want from their insurance policy.”

In closing, Goebbels remarks that while the present climate is “not the rosiest,” the market should start to level out in the wake of completing a full year of post-Covid touring.

“It’s certainly not all bad,” he says. “Insurance is still there to help where it can, and it always has been. Just please make your broker part of your team at a very early stage. Don’t hold them at arm’s length and expect them to jump in and bail you out at the last minute.”

“Too many people leave it too late and are then shocked at the price or the policy terms. People look at the weather forecast and think, ‘Oh Christ, it’s not looking too good next week. I better get some insurance in place.’ Well, insurers also look at that weather forecast and say, ‘No, it doesn’t look good, so I’m not going to cover it.’”

 


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TicketPlan teams with See Tickets in US

Ticket insurance and protection specialist TicketPlan has partnered with See Tickets to provide a refund insurance solution to customers in the US.

The link-up was secured via TicketPlan’s long-standing relationship with Florida and Pennsylvania-based GoReady, a leading provider of travel insurance in the States.

“We are delighted to be providing See Tickets with a refund insurance solution in the USA via our partnership with GoReady and we are all incredibly excited to be working with one of the US’s fastest growing live event ticketing companies,” says Ben Bray, Ticketplan’s relationship and development director.

Established in 1999, TicketPlan enables ticketing companies, venues, events and other organisations to provide an added value service to ticket buyers and develop a new and incremental source of revenue.

“We’re happy to work with the TicketPlan team to offer added protection for ticket purchases”

“We are big fans of See Tickets’ client-friendly approach,” says GoReady CEO Jason Schreier. “GoReady is proud to add its benefits and services to that already outstanding equation.”

UK-based TicketPlan expanded into the Polish market in 2019, having already established its presence in the Dutch, Danish and Italian markets, and announced a partnership with UK ticketing firm and live events website Skiddle last summer.

“Fans have been asking for a solution to protect themselves when the unexpected happens in a ‘no refund’ world,” adds Boris Patronoff, See Tickets Group COO and CEO of See Tickets North America. “We’re happy to work with the TicketPlan team to offer added protection for ticket purchases.”

 


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