Insurers are facing millions of dollars in claims after three of Taylor Swift’s concerts in Austria were cancelled due to a terrorist attack, but the losses will be shared among several insurers, two people involved in insuring her tours told Reuters.
Some 195,000 “Swifties” He was expected to attend the sold-out “Eras Tour” show at the Ernst Happel Stadium, with many travelling from overseas to see the superstar.
Barracuda Music, which organized the concert, said all tickets would be refunded within 10 days. There was no immediate comment on insurance arrangements.
A third insurance source told Reuters that Swift is popular with insurers because she rarely cancels concerts. Her profile and success mean most of the London specialist event cancellation insurers would be involved in covering her tours, one of the sources said.
The source declined to be named, citing client confidentiality.
Entertainment and sporting event organisers typically purchase cancellation insurance through the Lloyd’s of London market, according to the report.
The report said insurance plans typically do not include coverage for extremist attacks, but policyholders can purchase additional coverage for extremist attacks.
Marcos Alvarez, managing director of global financial institution ratings at Morningstar DBRS, said losses from the concert could cost insurers tens of millions of dollars.
Here’s everything we know about the attempted terror attack at a Taylor Swift concert
- Two young people, aged 17 and 19, were arrested this week for plotting an ISIS-style terror attack at a Taylor Swift concert in Austria.
- A third suspect, an 18-year-old, was arrested two days later.
- The would-be terrorists planned to drive a bomb-laden car into the crowds at the Eras Tour, killing as many people as possible.
- The mastermind, who authorities said gave a full confession to planning the attack after his arrest, had recently pledged allegiance to the Islamic State leader online, security officials said, and had reportedly only recently been hired by the venue as a security guard.
- Swift’s three sold-out Eras shows in Vienna have been canceled.
- Swift previously said in a 2019 article that her “greatest fear” in life was a violent attack at a concert.
But losses will be limited as the concerts can be rescheduled for a later date, he said.
Andrew Colcomb, head of syndicated research at Argenta Private Capital, said Swift’s insurance plan was created to protect insurers from liability if the tour were to be canceled entirely.
And that’s no small caveat: The Eras Tour is a massive production, hugely popular, and expected to bring in around $2 billion in ticket sales.
This type of major event cancellation insurance will typically cover costs such as the cost of moving the event to a new venue, artist compensation and rental fees for the original venue.
The insurance is provided by the event organizers, and industry sources say performers can purchase their own insurance to ensure they are paid if the event is cancelled.
Stadiums also often have some type of event cancellation insurance, said Loretta Waters of the Insurance Information Institute.
Concert cancellations are not likely to have a significant impact on the insurance industry.
“Assuming this is an isolated event, we believe most insurers will remain comfortable with their exposure to surrendered products,” Alvarez said.
Unless some insurers see terrorist threats as a sign of increased violence.
Alvarez said rising political tensions around the world could lead some insurers to “limit the scope of terrorism cancellation insurance coverage.”
British police said the ISIS plot would not affect Swift’s upcoming London shows.
It’s unclear how Swift’s team plans to beef up security at her upcoming Eras Tour concerts.
Rich Phillips, head of crisis management, resilience and reputation consultancy at insurance broker Marsh, said increased security at concert venues would “pose a significant challenge” for British police, who are dealing with recent violence including racist attacks against Muslims and immigrants.
Police arrested a 19-year-old suspect, who lives at his family home near Vienna, on Wednesday morning in connection with the planned attack, a law enforcement source told The Post.
A second suspect, a 17-year-old, was arrested later that day. A third juvenile was arrested Friday morning.
Authorities said the ringleader confessed to carrying out a suicide attack and planning to “kill as many people as possible” with homemade explosives and a knife.
Authorities said investigators found bomb-making materials at the suspect’s home and that one explosive device was in the process of being constructed.
With post wire
