Top Lloyd’s insurers back 'unique and critical' government-backed cover for live events
Re/insurance marketplace Lloyd’s of London has partnered with the UK government to launch a "unique and critical" cover that will enable live events to resume across the country as the economy reopens with the lifting of COVID-19 restrictions. The initiative is supported by a number of prominent insurers in the Lloyd’s market.
The UK Chancellor Rishi Sunak has announced a £750 million government-backed Live Events Reinsurance Scheme which will run for a period of one year from September 2021 to September 2022. It will cover costs incurred in the event of cancellation due to national or sectoral lockdowns being reimposed.
Lloyd's insurers supporting the scheme include Arch, Beazley, Dale Underwriting Partners, Hiscox and Munich Re. They will provide events companies with the option of purchasing cover from next month, alongside standard commercial events insurance, giving them the reassurance they need to plan ahead while also ensuring value for money for taxpayers.
The scheme will see the government act as a ‘reinsurer’ – stepping in with a guarantee to make sure insurers can offer the products events companies need.
Lloyd’s CEO John Neal (pictured) said: " Lloyd’s has stood by its customers throughout the pandemic, and we are pleased to strengthen those efforts by partnering with the UK government to deliver the Live Events Reinsurance Scheme. This unique and critical cover will enable live events to resume around the country with confidence as society begins to reopen and begin its recovery, and we are proud to be playing our part."
The Lloyd’s Market Association (LMA) stated that the reinsurance scheme follows intensive discussions with HM Government and leading Lloyd’s contingency underwriters.
“The launch of this scheme highlights the significant strengths and willingness of the Lloyd’s market to find innovative solutions to its customers’ needs. Supported by the LMA, it is the culmination of a significant intellectual and financial investment by managing agents,” said Patrick Davison, underwriting director of LMA.
LMA chairman Andrew Brooks added: “This partnership with the UK government will further add to the considerable support provided by the Lloyd’s market to its customers during the pandemic. The tenacity, dedication and technical expertise of Patrick Davison have been instrumental in making this possible, enabling the market to answer a need that is a crucial factor in enabling society to reopen. It is a great achievement for the market and facilitating initiatives such as this for the benefit of our members and customers goes to the heart of the LMA’s purpose.”
According to Christopher Croft, CEO of the London and International Insurance Brokers Association (LIIBA): “The insurance broking industry has been working with the government on this scheme for some time, and Tim Thornhill from Tysers has been tireless in his work to solve this problem. We are delighted that the entertainment and events industry now have a solution that will enable events to go ahead. It builds on the film re-start scheme which helps provide greater certainty for the cultural industries that are such a major part of the UK economy.”
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