The UK Government has officially launched its £800 million reinsurance scheme to cover COVID-related cancellation costs for live events, backed by a number of Lloyd’s Market Association (LMA) players.
The scheme will support live events across the country – such as concerts and festivals, conferences and business events – that are at risk of being cancelled or delayed due to an inability to obtain Covid-19 cancellation insurance
Munich Re, Beazley, Arch, Dale, and Ark are carriers of the scheme with more firms coming on board in the weeks to come.
The scheme commences today – a day later than had been expected – and will run until the end of September 2022.
“The live events reinsurance scheme demonstrates the innovative spirit for which the Lloyd’s market is globally renowned,” said Sheila Cameron, Chief Executive, Lloyd’s Market Association.
“The Lloyd’s Market Association, together with its insurer members, have worked collaboratively with HM government to ensure the live events sector has the confidence to re-open and create value for our economy. Lloyd’s syndicates remain resolute in designing creative solutions, such as the live events reinsurance scheme, that will give the events sector the confidence to realise its ambitions.
The live events sector is worth more than £70 billion annually to the UK’s economy and supports more than 700,000 jobs, including small businesses and the self-employed.
“The events sector supports hundreds of thousands of jobs across the country and as the economy reopens, we’re helping events providers and businesses plan with confidence right through to next year,” said Chancellor of the Exchequer Rishi Sunak.
“It’s great to launch the scheme today, giving our fantastic events sector a boost, helping the economy, and protecting livelihoods through our Plan for Jobs.”
Culture Secretary Nadine Dorries also commented: “The pandemic has been a unique challenge to live events, from gigs to business conferences. It’s a huge relief that so many are now back up and running, but it is crucial that they can also plan for the future with confidence and this scheme helps them do exactly that. With the sector contributing over £70 billion annually to our economy, it is right that we do all we can to support it and the talented people that work in it.”
Michael Hirst, Chair of the Events Industry Board, further stated: “The Live Events Reinsurance Scheme provides a much needed boost to event organisers to plan future events with greater confidence.”
“Both business and leisure events are set to play a major role in the recovery of the UK economy and event organisers are eager to take advantage of growing demand and optimise business opportunities. This welcome initiative from Government will ensure the remaining schedule of events for 2021 and those planned for 2022 can go forward with greater certainty.”