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Wimbledon receives most funding under Covid events insurance scheme

The Wimbledon tennis tournament has received by far the largest amount of government support from a Covid-19 insurance scheme set up to help live events organisers.

Organisers of live events ranging from music festivals to business conferences and car shows found it impossible last year to find commercial insurance, as insurers balked at the high risk of coronavirus restrictions being reimposed. After months of pleas for help from the events sector, the government intervened in August 2021 to provide reinsurance, in a move the chancellor, Rishi Sunak, said would allow events organisers to “plan with confidence”.

However, there are concerns the scheme has fallen short of the £800m in cover that was originally promised. The government has so far only disclosed support worth £109m for 18 entities, one of which was the Ministry of Defence in its running of the RAF Cosford air show, according to state aid disclosures.

By far the biggest disclosed beneficiary was the All England Lawn Tennis and Croquet Club Ltd (AELTC), the company that runs the Wimbledon championships and whose board members include the former British tennis stars Tim Henman and Anne Keothavong. It received £77m, more than 70% of the total disclosed. Wimbledon’s organisers had previously won plaudits for taking out commercial pandemic insurance that paid out well over £100m when the tournament was cancelled in 2020.

The second largest beneficiary of the government scheme was the British Phonographic Industry, the music industry lobby group that organises the Brit Awards. It received £9.2m.

The government said it was only obliged to publish details of awards worth more than £500,000, and that more than half the events covered were in the arts or entertainment.

The scheme’s overall low take-up contrasts with the £800m cited in the original announcement. The government has been criticised for offering help that came months too late for many events. Events organisers also complained that the cover on offer had important gaps, including not insuring cancellations if an artist or crew member contracted Covid-19 and tours had to be cancelled.

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Paul Reed, the chief executive of the Association of Independent Festivals, a lobby group, said the insurance was too expensive, and that it lacked coverage where social distancing was enforced, which meant it “wasn’t useful for festivals or live music”.

“I’m yet to speak to a single festival who took out the insurance,” he said. “It simply wasn’t fit for purpose.”

A government source said the scheme was “demand-led”, meaning it was unable to increase the number of businesses covered.

Other beneficiaries of the scheme have included businesses running food and gardening events and even antiques shows, as well as trade shows on topics such as engineering technology and medicine.

Sally Bolton, the AELTC chief executive, said: “The AELTC welcomes the support of the live events reinsurance scheme in relation to The Championships 2022.”

A spokesperson for the Department for Digital, Culture, Media and Sport said: “Our live events reinsurance scheme backed our brilliant arts, sporting and music events to continue despite the uncertainty caused by the pandemic and followed the unprecedented support provided for the culture sector through our £2bn culture recovery fund.

“It has helped support almost 15,000 jobs, more than £400m of investment and 3 million people are expected to attend events supported by the scheme this summer. The generous scheme remains open for bids until September.”

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Live Events Reinsurance Scheme supports over £400 million of investment and paves way for busy summer events season

Live Events Reinsurance Scheme supports over £400 million of investment and paves way for busy summer events season
  • Almost 15,000 jobs and more than 150 events supported by the scheme, including Wimbledon, The BRIT Awards and Virgin Radio’s Big Thank You Tour
  • UK live events sector is worth more than £70 billion annually to the economy and is bouncing back from the pandemic with a vibrant summer programme of events

Nearly three million people are expected to have attended events supported by the Government’s Live Events Reinsurance Scheme by the end of the summer.

The scheme, which closes in September, has paved the way for a busy summer events season, giving event organisers the confidence to invest in future events – safe in the knowledge they can insure against the most severe coronavirus-related risk, providing job security and boosting the economy.

The Government acted as a reinsurer and guaranteed to make sure insurers offered products to event companies. Prominent insurers in the Lloyd’s Market including Munich Re, Beazley, Arch, Dale Underwriting Partners, Hiscox and Ark are carriers of the scheme.

The scheme has already provided well over £100 million worth of cover – supporting more than £400 million of investment and protecting almost 15,000 jobs, keeping the economy moving and driving growth across the country.

Events supported across the UK include national set-piece events such as Wimbledon, The BRIT Awards, Birmingham’s Spring Fair and the London Art Fair. It has also supported important community events such as the Shaftesbury Book Fair, the Cardiff Half Marathon and the Gloucester Quays Christmas Outdoor Ice Rink.

Chancellor of the Exchequer, Rishi Sunak said:

The UK is a rich cultural hub and puts on some of the best arts, sporting and music events across the globe.

Our Live Events Reinsurance Scheme backed these events, enabling them to take place in the midst of uncertainty caused by the pandemic – helping to support nearly 15,000 jobs and over £400m of investment.

Arts Minister Lord Parkinson of Whitley Bay said:

This summer the public can look forward to a packed schedule of live events in sport, culture and business thanks to Government support for the live events sector and the incredible resilience and ingenuity of the people who work in it.

While it is right that the Live Events Reinsurance Scheme is being wound down as we bounce back from the pandemic, I am proud of the role it played in getting the live events sector back on its feet.

Virgin Radio UK content director, Mike Cass said:

The Virgin Radio UK Big Thank You Tour was one big rock star thank you to our key workers for everything they have done for us all during the pandemic.

The Live Events Reinsurance Scheme meant we could reschedule the tour for when it was safe to go ahead and ensure our key worker heroes were properly thanked by the best names in the business with three evenings of great music.

Patrick Davison, underwriting director, Lloyd’s Market Association, said:

Event cancellation due to covid was an uninsurable risk everywhere in the world. No one would touch it. But in co-operation with the LMA and Her Majesty’s Government – without whose support the scheme could not have been possible – specialist underwriters at Lloyd’s were prepared to innovate in support of the UK events industry, to get the country back on an even keel. I am proud of their willingness to risk their own capital to build confidence in the events sector and help restore the economy.

There are strong signs the vital events sector is bouncing back, with a full programme of concerts, music festivals, sporting competitions and other events throughout the summer. This is thanks to a number of successful Government policies such as the Events Research Programme and world-leading levels of support committed through the £1.57 billion Culture Recovery Fund.

The Live Events Reinsurance Scheme has supported events across the country and in all four nations of the UK. In the West Midlands, events totalling £13 million in spend have been covered, including the National Running Show and MACH 2022 at Birmingham’s National Exhibition Centre. More than £3 million has been spent towards events in the North West, including Virgin Radio’s Big Thank You Tour and the Federation of Small Businesses Awards.

As the risk posed to events by Covid-19 has been significantly reduced thanks to the success of the Government’s vaccination programme, the reinsurance scheme is scheduled to end as planned on 30 September in line with the Government’s Living with Covid plan.

Ends

Notes to editors:

Testimonials:

Sally Bolton, Chief Executive, All England Tennis Club, said:

The AELTC welcomes the support of the Live Events Reinsurance Scheme in relation to The Championships 2022.

Mike Seaman, CEO Raccoon Events, Organiser of the National Running Show, said:

The pandemic was a difficult time for us as exhibition organisers. The reinsurance scheme gave us the confidence to delay any decision about postponing our event until the situation had improved markedly. We are a small business and could not have done this without the backing of the government and the net result was that we brought 20,000 people together, promoting exercise, improving mental health and stimulating trade, all as a result of the reinsurance scheme.