COVID 19 – Live Events Reinsurance Scheme
DCMS have issued the first version of the Scheme’s rules for live events reinsurance which provides for the reinsurance by Her Majesty’s Government of certain liabilities of participating insurers in respect of events cancellation insurance policies.
The scheme will run from the date of the first full set of scheme rules until the 30th September 2022.
The objective of the scheme is to assist the economy in re-opening and remove barriers to securing the right type of insurance for events.
The scheme is part of the pan for jobs and effectively sees the Government as a reinsurer providing a guarantee to make sure insurers can offer the product events companies need. It is understood that a number of prominent insurers within the Lloyds market are supporting the scheme and cover should be available from this month alongside standard commercial events insurance.
The rules are technical and are explained in the document recently released:
Hopefully this will provide stability to the events market. The Culture Secretary, Oliver Dowden stated:
“We’ve been here for live events throughout the pandemic with billions of pounds of rescue funding. Today is an important next step as we develop live events insurance to give them the confidence they need to plan for a brighter future.
Our events industries are not just vital for the economy and jobs; they put Britain on the map and, thanks to this extra support, will get people back to the experiences that make life worth living.
All part of our plan to rescue, reopen and recover.”
And Sacha Lord, Night Time Economy Adviser for Greater Manchester also stated:
“I’m really pleased that the Government has decided to introduce an insurance scheme for the events sector.
DCMS has worked alongside and listened to event organisers throughout the crisis, and I’m grateful that they have now been able to introduce this support today.
The events sector has been in dire straits throughout this crisis and this move will not only save hundreds of upcoming events, but will support the thousands of freelancers behind the scenes who depend on the sector for their own livelihoods.
We can start to rebuild the sector with confidence, and renew the UK’s status as a global leader in entertainment and cultural events.”