Taylor Swift's terror threat-canceled concerts could cost insurers big bucks
Three sold-out Taylor Swift concerts in Vienna, canceled due to an ISIS-related terrorist threat, could wind up costing insurers a lot of money since tickets were sold to 195,000 people
Taylor Swift had to call off planned concerts in Austria’s capital over a terror attack plot, and the cancellations will lead some insurers to cover a hefty amount, according to Reuters.
The outlet reported Friday that two unnamed sources "involved in insurance for her tour" said a handful of insurers will see costs associated with the cancellation of the Ernst Happel Stadium shows.
Swift is popular among insurers because she rarely cancels concerts, a third insurance source told Reuters. 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.
TAYLOR SWIFT FANS DRIVE NEW TRAVEL TREND OF ‘GIG TRIPPING’: HOW DOES IT WORK?
Organizers of large sporting and entertainment events typically buy event cancellation insurance, much of which tends to be insured through the Lloyd's of London market by a consortium of insurers. They often get terror-related cancellation coverage on top of that, according to the outlet.
As of Friday, amid the ongoing probe into the terror plot against the three Swift concerts, three suspects have been taken into custody by authorities in Austria. All three were teenagers.
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 coverage 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.
THE ‘SWIFT LIFT’: HOW TAYLOR SWIFT IS BOOSTING THE ECONOMY
Taylor Swift launched her wildly popular Eras Tour showcasing songs from her large music catalog in March 2023, with each show drawing massive numbers of fans. The international leg began last August.
The show saw some changes in May, when she began incorporating music from her newest album, "The Tortured Poets Department," into the program.
Pollstar projected late last year that the tour, which has shows in London scheduled later this month and in the U.S. in October, could wind up grossing $2.165 billion.
Between November 2022 and November 2023, the Eras Tour grossed $1.04 billion, according to Pollstar.
The success of her tour has helped make Taylor Swift a billionaire. Forbes said her current estimated net worth is $1.3 billion.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Eras Tour has also been the subject of a record-setting concert film, "Taylor Swift | The Eras Tour," that came out in mid-October 2023
Reuters and Fox News Digital’s Greg Norman contributed to this report.