UK Government reluctant to underwrite festival insurance
Following the UK’s phased , which would see all COVID-19 restrictions lifted by 21 June, that music festivals in Parklife, Leeds and Reading have all sold out in anticipation temporarily buoyed a financial revival.
However, the UK Government remains reluctant to underwrite the events’ cancellation insurance policies. This has raised concern among insurance experts and promoters alike that without sufficient backing the sector could collapse.
Holding out for financial relief
Culture Minister Caroline Dinenage that the hesitation was an effort to avoid giving false hope and then “pulling the rug out from underneath [festivals]”, particularly as a third wave of COVID arises in Europe.
Dinenage also dispelled hope that a festival equivalent of the £500m Film and TV Production Restart Scheme was a possibility, “there are no live audiences in high-end film and TV production and that is where the risk is.”
Nevertheless, the business case for opting to insure the events is clear: a £650m insurance fund could potentially unlock £2bn in commercial opportunities, said a by MusicUK. The UK’s events industry itself is worth approximately £84bn.
Cancellation insurance: A modern necessity?
In the highly unpredictable pandemic-inflected economy, events are at the mercy of external factors beyond their control. In such an atmosphere, businesses will continue to suffer mounting losses unless relief can be accomodated.
“The lack of availability of cancellation insurance significantly raises the risk that festivals will be cancelled this summer because without the certainty it provides, organisers will be reluctant to unlock the flow of money to their supply chains,” commented Tim Thornhill, Director at .
Both promoters and consumers need the security and clarity required to invest large amounts of time and money into an event. With reports that governments in Europe are considering event insurance, the UK’s decision could ultimately be favourable. However, until then, the viability of the country’s summer event circuit remains uncertain.
Tribe and APOLLO announce national insurance campaign
Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.
According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage.
What does the national insurance campaign include?
According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options.
It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said.
"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe.
Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.
APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.
"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.