Source: asiainsurancereview.com

Losses to event cancellation insurers are already likely to be more than $100m, although not all event organisers buy epidemic cover, reported Reuters, citing Mr Tim Thornhill, director, sales in entertainment and sport at Lloyd’s of London broker Tysers.

To limit losses, insurers are already excluding the epidemic from their policies, which means that businesses looking to buy cancellation insurance for events around the world will not be able to get cover for the new coronavirus outbreak, industry sources said.

Organisers of events which already have epidemic cover will be able to claim for cancellation due to the coronavirus, provided the event was due to take place in a country subject to travel bans or limits on public gatherings, industry sources say.

Many businesses do not buy the extra epidemic cover, but large events are more likely to have it, insurers say. But for those planning music, sporting or trade events now, some of whom begin organising and buy the insurance up to two years in advance, there will be no protection.

The Shanghai Grand Prix and the Mobile World Congress in Barcelona are among sporting events and major conferences cancelled as a result of the virus, which has claimed over 1,600 lives, mainly in China. Analysts at Jefferies estimate the insurance value of the Shanghai Grand Prix at $500m, though brokers and underwriters told Reuters they expected losses to be lower.

Other events cancelled include the Hong Kong Art Basel fair, which one underwriter said would prove costly for insurers due to the high value of the art.