Increasing Trends on Events Cancellation Insurance
There is a growing trend of increased risk of event cancellation. The question is how much are event organisers and artists – or other rights owners and broadcasters – aware of the implications and are they receiving the right advise from their insurance and reinsurance brokers. In this article we explore the three main risks that live event organisers can no longer ignore.
The weather
Global warming has caused erratic weather patterns which continue to change at a quite alarming rate and have caused increasing problems to touring parties and live events. Weather events such as cyclones, storms, hail and heavy snowfall are obvious reasons but, increasingly, so is extreme high temperatures resulting in a risk to audiences. Touring routes are being taken into consideration more now by insurers than previously; how much time is allowed for travelling, the size of production and number of trucks, buses and personnel involved. For fixed site outdoor events more questions are now asked about the structures used, previous experience and emergency plans.
National Mourning
National Mourning (NM) especially for political figures is something often not considered by many. In Africa, this may have a huge impact on all types of live events. NM can be triggered by the death of a president, a member of the royal family, or another kind of leader; or a major natural disaster or a tragedy causing large scale loss of life. For a number of reasons this has occurred more regularly in recent years.
One problem for event organisers and insurers alike is that nobody seems too sure exactly what impact any mourning period could have on live events, or how long it may last. For example the recent death of the Zimbabwean former president mourning was never clear how long the period would be. It is also difficult for organisers to know if events be cancelled immediately after the bad news is released, or would it only apply to a period of time around a funeral – and if so how long?
Civil commotion, strikes & terrorism
Civil commotion, strikes and terrorism seems to be an increasing risk to events in Africa. The recent strike by South African Airways (SAA) stuff is a huge risk to events’ organisers and is probably one of many strikes to come. Unresolved political tensions in a number of African countries underpinned by alleged stolen elections are a time bomb of civil commotions, uprising, terrorism and the like.
Terrorism, or the threat of, is and always will be a concern to everyone as it can occur anywhere in the world these days. These risks are excluded under standard cancellation insurance policies but offered as an optional extra coverage with premiums calculated by insurers on each city and country.
In light of these developments, Maksure Risk Solutions has designed events cancellation and events liability insurance for events organisers in Africa. We strongly encourage events organisers to utilise that services of specialist insurance and reinsurance brokers to tackle the challenges we noted as they continue to evolve.
For more information regarding this product, contact our Chief Operating Officer, Mr Knighty Mawere at +27 11 805 0086.
About Maksure Risk Solutions
Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.
