Insurers face substantial financial losses after three Taylor Swift concerts in Austria were abruptly cancelled due to a foiled attack at Vienna’s Ernst Happel Stadium. The cancellations have triggered millions of dollars in insurance claims, with multiple providers expected to share the financial burden, according to sources familiar with the insurance arrangements for Swift’s tour.
The cancelled concerts, part of Swift’s highly anticipated Eras Tour, were expected to draw approximately 195,000 fans, many of whom had traveled abroad. The sudden cancellations have left insurers scrambling, as Swift’s concerts are rarely cancelled, making her a favored client among event cancellation insurers. However, the unexpected nature of the cancellation means that a significant payout is now on the horizon.
Event Cancellation Insurance and Terrorism Coverage
Event cancellation insurance is common for large-scale events like Swift’s concerts, particularly those involving high-profile artists and significant financial stakes. This type of insurance typically covers costs related to delays, relocations, venue rent, artist fees, and ticket refunds. In this case, concert organizer Barracuda Music has promised to refund all tickets within 10 days.
While standard event cancellation policies often exclude militant attacks, organizers frequently purchase additional coverage specifically for terrorism-related threats. “The standalone terrorism cancellation insurance policy would have been triggered by the terrorism act or threat clause within the policy,” said Tim Thornhill, managing director at insurance broker Tysers.
According to reliable resources the policies in place for Swift’s tour were structured to avoid a total loss scenario. This means that while the Vienna cancellations will result in significant claims, they are unlikely to lead to a complete financial write-off for the insurers involved.
Impact on the Insurance Market
Despite the hefty claims, industry experts believe this incident will unlikely cause a major shift in the event cancellation insurance market. Assuming this is an isolated event it is to be believed that most insurers will remain comfortable with their exposure to cancellation insurance products. However, some caution that if such cancellations become more frequent or high-profile events like the upcoming Paris Olympics face similar threats, the insurance market could tighten, leading to more restrictive policies and higher premiums.
Swift’s Eras Tour, projected to generate nearly $2 billion in ticket sales, remains a significant focus for insurers as she continues her European leg, including her upcoming return to London’s Wembley Stadium.
