Christopher BarrettThe Government-backed Live Events Reinsurance Scheme, designed to offer live events operators cover during the Covid-19 pandemic, paid out just one single claim of £180,500 while generating nearly £6m in premiums to cover 169 events, according to official data seen by the Financial Times.
The scheme, first announced in August 2021, met with widespread criticism from the live events industry with it being repeatedly described as not being fit for purpose due to its limited scope.
According to a freedom of information (FOI) request by the newspaper, the scheme resulted in one payment to organisers of an electronic music festival after the event was called off due to the venue being required as a vaccination centre. The FOI did not include the number of unsuccessful claims.
In June last year, the Department for Digital, Culture, Media & Sport (DCMS) said the scheme had provided more than £100m worth of cover, supported more than £400m of investment and protecting almost 15,000 jobs. Among the events backed by the scheme were Wimbledon Championships 2022, The BRIT Awards, Birmingham’s Spring Fair, Virgin Radio’s Big Thank You Tour and the London Art Fair.
The £750m scheme offered cost indemnification if an event had to be cancelled, postponed, relocated or abandoned due to UK Civil Authority restrictions in response to Covid-19. It was launched in August 2021 and ran for a year.