Group 8
2022-10-18

Insurance for Event Postponement due to Bad Weather

Festival cancellation due to extreme weather is on the rise

 As climate change drives increased weather volatility and extreme weather events, the event management industry is feeling the heat.

The world’s oceans absorb roughly 90% of the warming caused by greenhouse gas emissions over the past 40 years. This added heat is driving storm severity, with stronger winds and potential for rapid intensification or increased rainfall. Major events can carry a large footprint, not only of losses but also in terms of business interruption from festivals needing to be canceled or postponed. 

Take for example Hurricane Ian, which forced major event cancellation not only in the immediate vicinity of the storm path, but up and down the East Coast, stretching from Florida to Maryland. These sorts of business interruption losses are often left uncovered by traditional policies, thus they are uncounted in the estimated $63 billion in insured losses from the storm. 

As exposures grow, festival organizers face price increases, and more restrictive terms & conditions from traditional insurance providers, whose losses from hurricanes and other Nat Cat are having dramatic impacts on the availability of traditional capacity. Parametric products, on the other hand, offer fresh capacity, flexibility, and transparency to meet the distinct needs of the festival industry.

Descartes’ parametric insurance provides financial protection against large the event cancellation

Interested in learning more? Fill out the form to download our latest deal spotlight and see how our extreme weather insurance can offer financial resilience for event organizers, despite any storms on the horizon.

Festival cancellation due to extreme weather is on the rise

 As climate change drives increased weather volatility and extreme weather events, the event management industry is feeling the heat.

The world’s oceans absorb roughly 90% of the warming caused by greenhouse gas emissions over the past 40 years. This added heat is driving storm severity, with stronger winds and potential for rapid intensification or increased rainfall. Major events can carry a large footprint, not only of losses but also in terms of business interruption from festivals needing to be canceled or postponed. 

Take for example Hurricane Ian, which forced major event cancellation not only in the immediate vicinity of the storm path, but up and down the East Coast, stretching from Florida to Maryland. These sorts of business interruption losses are often left uncovered by traditional policies, thus they are uncounted in the estimated $63 billion in insured losses from the storm. 

As exposures grow, festival organizers face price increases, and more restrictive terms & conditions from traditional insurance providers, whose losses from hurricanes and other Nat Cat are having dramatic impacts on the availability of traditional capacity. Parametric products, on the other hand, offer fresh capacity, flexibility, and transparency to meet the distinct needs of the festival industry.

Descartes’ parametric insurance provides financial protection against large the event cancellation

Interested in learning more? Fill out the form to download our latest deal spotlight and see how our extreme weather insurance can offer financial resilience for event organizers, despite any storms on the horizon.