Taylor Swift Show Cancellations Cost Insurers Millions

Insurers face millions of dollars in claims after a foiled attack forced three Taylor Swift concerts in Austria to be cancelled, though several providers will share out the hit, two people involved in insurance for her tour told Reuters.

The concerts in Vienna were cancelled after a planned attack at the Ernst Happel Stadium. Some 195,000 "Swifties" had been expected to attend, with many travelling from abroad for a chance to see the pop superstar.

Swift is popular among insurers as she rarely cancels concerts, a third insurance source said. Her celebrity and success mean that most specialist event cancellation insurers in London would be involved in covering her tour, one of the sources said. The sources declined to be named, citing client confidentiality.

"The standalone terrorism cancellation insurance policy would have been triggered by the terrorism act or threat clause within the policy, as there has been a known potential terrorism event," said Tim Thornhill, managing director at broker Tysers.

Reuters could not establish the extent of cover on the concerts. Marcos Alvarez, managing director for global financial institution ratings at Morningstar DBRS, said losses from the cancellations could be in the tens of millions of dollars.

Alvarez said insurance losses were likely to be limited by the fact that the concerts could be rescheduled. The cover was structured so that insurers would not be on the hook for a full cancellation of the tour, said Andrew Colcomb, head of syndicate research at Argenta Private Capital, based on his analysis.

The policies can be taken out by local or international organisers, and artists can add their own policies to make sure they get paid for the event if it is cancelled, industry sources say. The stadium would also typically have event cancellation insurance, said Loretta Worters, vice president, media relations at the U.S. Insurance Information Institute.

Any extra security for the concerts would "create a significant challenge" for the police, said Rich Phillips, head of crisis, resilience and reputation consulting at insurance broker Marsh, particularly as officials are on high alert after days of rioting in Britain involving racist attacks targeting Muslims and migrants.