Fans of US singer Taylor Swift - swifties - gather in Vienna, Austria, on August 8, 2024, after concerts of the star were cancelled at the last minute. Austrian authorities detained two suspects for allegedly plotting to attack Taylor Switft's Vienna concerts. A 19-year-old IS sympathiser was planning a suicide attack designed to kill many people, the intelligence agency said. (Photo : ROLAND SCHLAGER/APA/AFP via Getty Images)
Insurers are bracing for massive financial claims following the cancellation of three Taylor Swift concerts in Vienna due to a thwarted ISIS attack, according to Reuters.
CNN reported that the concerts, which were scheduled to take place at the Ernst Happel Stadium, were abruptly canceled this week. In return, affecting approximately 195,000 ticket holders. The incident, involving a planned attack, has led to widespread concerns about the potential financial fallout for the event organizers and their insurers.
The cancellations, which come as a major blow to both fans and insurers, are expected to result in claims amounting to tens of millions of dollars.
The concerts, part of Swift's lucrative Eras tour, were highly anticipated, with many fans traveling from abroad for the performances. The impact of the cancellations on insurance claims is expected to be huge, given Swift's rare history of concert cancellations, which makes her tours particularly attractive to insurers.
Event cancellation insurance, often arranged through a consortium of insurers in London, typically covers various aspects such as delays, venue rental, and artist payments.
However, coverage for terrorism-related events can be complex, as these are frequently excluded from standard policies. Insurers may have provided additional cover against such threats, but the extent of this coverage remains unclear.
Insiders suggest that while the losses could be high, the fact that the concerts might be rescheduled could mitigate the overall financial impact.
At the same time, the incident has also sparked discussions about how insurers might adjust their policies in response to increasing risks associated with high-profile events. Industry experts warn that if such cancellations become more frequent, particularly in light of global political tensions, insurers may reconsider their coverage terms for future events.