Event insurance costs could rise amid growing security threats
Event organisers may be facing higher insurance premiums and stricter coverage terms as security threats reshape the industry. The global event insurance market reached $819.4m in 2023 and is projected to grow at 12.7% annually to $2.3bn by 2032.
Civil unrest has reportedly forced insurers to reassess their approach, according to Hiscox UK’s head of event insurance Rob Carslake’s article in Insurance Age. Anti-government demonstrations have spread across multiple countries this year. These disruptions create unpredictable risks for event planners.
Transportation strikes pose particular challenges. Rail workers across Europe have staged walkouts, affecting conference access. Airport strikes (such as in Finland) have grounded flights during peak business travel periods. These risks complicate insurance underwriting and pricing.
New security legislation creating more complexity
New legislation adds another layer of complexity. Martyn’s Law, expected to become UK law, will place increased safety duties on venues with over 800 attendees. This follows the 2017 Manchester Arena bombing that killed 22 people.
Climate change compounds current challenges. Extreme weather events disrupted outdoor conferences across Europe this summer. Air quality concerns from wildfires now affect indoor event planning. Insurers factor seasonal risks into pricing models. Event organisers must now evaluate location and timing more carefully.
“Civil commotion and strikes can have far-reaching consequences for event organisers,” Hiscox UK’s Rob Carslake said.
Coverage exclusions are becoming more common. Insurers increasingly exclude civil unrest protection from standard policies, forcing organisers to purchase separate coverage at higher costs.
Risk assessment has also become more complex. “For underwriters analysing and pricing becomes much more complex and tied to specific geographies and seasons,” according to Carslake. Insurance underwriting is the process where insurers assess risk and decide whether to provide coverage. Underwriters analyse factors like event location, size and potential threats to determine premiums and policy terms.
High-profile corporate events at risk
Corporate events face heightened scrutiny following recent conference disruptions. Tech companies now deploy undercover security at major events. Business travel planners report increased venue security requirements and associated costs.
Event organisers must evaluate political climate alongside traditional factors. Recent protests at high-profile corporate gatherings demonstrate evolving risks. Venue selection now considers proximity to contentious issues or organisations.
Active shooter risks add another dimension. Insurance policies now commonly include coverage for these incidents, reflecting their growing frequency at public gatherings.
Terrorism coverage, however, remains separate from standard policies. Organisations hosting large events must purchase specific terrorism insurance, adding to overall event costs.
Industry sources report evolving coverage terms. Insurers increasingly exclude civil unrest from standard policies. Event cancellation insurance has shifted from optional to essential coverage. Risk assessment may now require specialised expertise in political and security analysis.
