On October 21, 2021, Sarah Cronin was quoted in Best’s Review on the impact of the COVID-19 pandemic on insurers in the live entertainment market.
According to the article, over the past 19 months, insurers have been hit with some fairly large losses, particularly in event cancellation coverage. That's forcing some policyholders to reevaluate where they will place those risks, with some looking to captives or self-insurance as an option, said Cronin. Since the start of the pandemic, carriers insuring live events have been busy altering policy language and adding communicable disease exclusions.
In recent months, many live events have returned to the stage, while others continue online or have moved to a more hybrid model. Still, as the reopening of live events creates the long-awaited sigh of relief that event organizers and owners have been waiting for, they now face yet another crossroad. Surging case rates from the delta variant and lagging vaccine acceptance are sounding the alarm bells for insurers and their insureds.
“We're not yet sure how that will fare for those in the live entertainment industry,” Cronin said, “but we are now seeing some event organizers weighing their decisions about additional cancellations, and delta is also giving people pause for what the next variant could hold.”
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