There have been important financial losses in the events sector as a result of COVID-19.
The French Insurance Federation states that almost all contracts covering the cancellation of events exclude the epidemic (FFA, 2020). Here is an example of an organiser who was surprised to learn that they were not covered for this health crisis. Hellfest is a rock music festival held in Clisson in the Loire-Atlantique. The organiser publicly criticised their Insurer, who refused to compensate them even though they had taken out pandemic insurance. According to their Insurer Albingia, a contingency specialist in France, «financial losses resulting from atypical SraS (Severe Acute Respiratory Syndrome) pneumonia are “always” excluded” from their Special Risks contracts (Argus, 2020). Let us look at what is happening in the London market.
The Wimbledon organisers were able to be compensated for their cancellation insurance
Their contract with the London market including Lloyd’s covered the risk of an outbreak. In general, insurers are in the process of settling various claims because some wordings did not contain any specific exclusions for communicable diseases. This is where certain London players hope to stand out, having put in place products that are meeting the needs of their clients at this moment in time.
The future
It is confirmed that there will be premium increases and absolute exclusions for communicable diseases and viruses. Evidently, you cannot cover known events. Some London insurers have withdrawn from Event Cancellation. However, others are continuing to quote risks and there are some new entrants wishing to enter this class of business. We invite those who need to insurance for their next event to contact us for a fresh approach from the London market.
References
http:// https://www.ffa-assurance.fr/infos-assures/coronavirus-covid-19-et-assurances
https://www.argusdelassurance.com/les-assureurs/coronavirus-l-assureur-du-hellfest-maintient-son-refus-d-indemniser.163496