Reinsurance Scheme launches today to support tourism and hospitality sector

A new scheme will help tourism and hospitality businesses reopen “with confidence”, the Government has announced.

It comes after the £800 million Live Events Reinsurance Scheme launched today, 22 September 2021.

The initiative will support live events – such as concerts, festivals, conferences, and business events – that are at risk of being cancelled or delayed due to an inability to obtain Covid-19 cancellation insurance.

The latest statistics suggest that the live events sector contributes more than £70 billion annually to the UK’s economy and supports more than 700,000 staff, self-employed workers and small businesses.

But due to the turbulent business environment, insurers are hesitant to offer cover for Covid-19 related cancellations, such as further lockdowns and social distancing restrictions.

The Reinsurance Scheme, however, will act as a bridge between insurers and the tourism and hospitality industry, providing guarantees to ensure insurers can offer the products events companies need.

Commenting on the launch of the initiative, the Government said the one-of-a-kind scheme will give event managers the “confidence they need to plan for the future”.

“The pandemic has been a unique challenge to live events, from gigs to business conferences. It’s a huge relief that so many are now back up and running, but it is crucial that they can also plan for the future with confidence and this scheme helps them do exactly that,” said Culture Secretary Nadine Dorries.

Michael Hirst, Chair of the Events Industry Board, added: “The Live Events Reinsurance Scheme provides a much needed boost to event organisers to plan future events with greater confidence. Both business and leisure events are set to play a major role in the recovery of the UK economy and event organisers are eager to take advantage of growing demand and optimise business opportunities.

“This welcome initiative from Government will ensure the remaining schedule of events for 2021 and those planned for 2022 can go forward with greater certainty.”

The scheme is available until the end of September 2022. Click here to learn more.

For help and advice with related matters, please get in touch with our tourism finance team today.

 

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