In the News
UK Treasury, Lloyd’s Team Up on Reinsurance Scheme
The scheme covers costs incurred if lockdowns are reimposed that cause the cancellation of a live event.
- David Pilla
- September 2021
The U.K. government announced a £750 million ($1.04 billion) live events insurance scheme in partnership with Lloyd's underwriters to boost the live events industry in the country in the wake of COVID-19 restrictions.
The government partnered with Lloyd's on a “Live Events Reinsurance Scheme” as part of the U.K. Treasury's “Plan for Jobs,” Treasury said in a statement. Under the scheme, the government will act as a reinsurer.
The events sector supports hundreds of thousands of jobs across the country, and I know organizers are raring to go now that restrictions have been lifted.
Chancellor of the Exchequer
The pandemic is not over, but Treasury said that with a sufficiently high proportion of the population vaccinated, “the country can learn to live with COVID-19 without the need for the strict economic and social restrictions.” Treasury said the events scheme, which will support live events across the United Kingdom that are open to the public, will cover costs incurred if government COVID-19 restrictions such as the reimposition of national or sectoral lockdowns cause the cancellation of an event.
According to Treasury, the live events sector is worth more than £70 billion annually to the economy and supports more than 700,000 jobs, including small businesses and the self-employed.
The scheme was launched in partnership with Lloyd's and the government “following intensive discussions” with the government and leading Lloyd's contingency underwriters, the Lloyd's Market Association said in a statement.
Participating syndicates include Arch, Beazley, Dale Underwriting Partners, Hiscox and Munich Re. The scheme, slated to run from September 2021 to September 2022, will support live events across the United Kingdom for which the public can purchase tickets, such as music festivals and business events, the LMA said.
“The launch of this scheme highlights the significant strengths and willingness of the Lloyd's market to find innovative solutions to its customers' needs,” said Patrick Davison, underwriting director, LMA, in a statement. “Supported by the LMA, it is the culmination of a significant intellectual and financial investment by managing agents.”
“The events sector supports hundreds of thousands of jobs across the country, and I know organizers are raring to go now that restrictions have been lifted,” said Chancellor of the Exchequer Rishi Sunak in a statement.
He said the lack of the right kind of insurance “is proving a problem, so as the economy reopens I want to do everything I can to help events providers and small businesses plan with confidence right through to next year.”