Insurers face millions of dollars in claims after a foiled attack forced three Taylor Swift concerts in Austria to be canceled, though several providers will share the hit, two people involved in insurance for her tour told Reuters.
Some 195,000 “Swifties” had been expected to attend the sold-out “Eras Tour” shows at the Ernst Happel Stadium, with many traveling from abroad for a chance to see the superstar.
Barracuda Music, the concert organizer, said all tickets would be refunded within 10 days. It could not immediately be reached for comment about insurance arrangements.
Swift is popular among insurers as she rarely cancels concerts, a third insurance source told Reuters. Her celebrity and success mean that most specialist event cancellation insurers in London would be involved in covering her tour, one of the sources said.
The sources declined to be named, citing client confidentiality.
Entertainment and sports event organizers usually buy cancellation insurance, often through the Lloyd’s of London market, the report said.
The insurance plans don’t usually include coverage in the event of militant attacks, but policyholders can buy extra coverage against them, according to the report.
Marcos Alvarez, managing director for global financial institution ratings at Morningstar DBRS, said the concert losses could cost insurers’ tens of millions of dollars.
Here’s everything we know about the attempted terrorist attack at a Taylor Swift concert
- A 17-year-old and a 19-year-old were arrested for plotting an ISIS-style terror attack at one of Taylor Swift’s Austrian concerts this week.
- A third suspect, 18, was arrested two nights later.
- The would-be terrorists planned to drive a bomb-filled car into the Eras Tour crowd to kill as many people as possible.
- The main suspect — who authorities say fully confessed to the attack plans after his arrest — had recently sworn allegiance to Islamic State’s leader online, security officials said. He had reportedly just been hired by the venue to work security.
- Swift’s three sold-out Eras shows in Vienna have been canceled.
- Swift previously said her “biggest fear” in life was a violent attack at one of her concerts in a resurfaced article penned by the singer in 2019.
However, he said the losses would likely be limited since the concerts could be rescheduled for a later date.
Swift’s insurance plan was built so insurers would not be on the hook for a full tour cancellation, according to Andrew Colcomb, head of syndicate research at Argenta Private Capital.
And that’s no small caveat. The Eras Tour is a huge production – and hugely popular, expected to generate about $2 billion in ticket sales.
This type of large event cancellation insurance usually covers costs like moving the event to a new venue, the artist’s pay and rent for the original venue.
The policies are taken out by the event organizers. Then, performers can tack on their own policies to ensure they are paid for the event if it is canceled, industry sources said.
Stadiums often take out some form of event cancellation insurance, too, Loretta Worters of the US Insurance Information Institute said.
The concert cancellations shouldn’t have too much further impact on the insurance industry.
“Assuming this is an isolated event, we believe that most insurers will remain comfortable with their exposure to cancellation insurance products,” Alvarez said.
Unless some insurers take the terrorist threat to be an indication of increased violence.
Alvarez said some insurers could “restrict the coverage available for cancellation insurance due to terrorism, given increasing political tensions around the world.”
British police said the ISIS plot shouldn’t affect Swift’s upcoming London shows.
It is unclear how Swift’s team plans to ramp up security forces at future Eras Tour concerts.
Rich Phillips, head of crisis, resilience and reputation consulting at insurance broker Marsh, said extra security at the concerts would “create a significant challenge” for the British police, who are dealing with recent riots involving racist attacks against Muslims and immigrants.
Police arrested a 19-year-old suspect living at his parents’ home near Vienna on Wednesday morning in connection to the planned attack, law enforcement sources told The Post.
A 17-year-old second suspect was arrested later that day and a third teenager was arrested Friday morning.
The main suspect confessed to wanting to carry out a suicide attack and “kill as many people as possible” with homemade explosives and knives, authorities said.
Investigators found bomb-making materials at the main suspect’s home, with one explosive device in the process of being built, according to officials.
With Post wires
