Some insurers see opportunity in tight cancellation market
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While some big names have exited the event cancellation insurance market since the onset of the COVID-19 pandemic, more insurers are expected to enter the sector, some experts say.
“You’ll see some around the fringes,” said Francis Hernandez, London-based head of contingency for Cincinnati Global, a unit of the Cincinnati Insurance Cos., which is one of the new entrants into the market.
“There are others who are definitely circling the area but have yet to put their capacity down in this space,” said James Davies, divisional director at London-based EC3 Brokers.
Some will likely enter the market in the next six months, and while some will commit for the long term, others will be “more opportunistic,” he said.
Alistair MacLean, London-based global product leader, live entertainment, for Allianz Global Corporate Specialty, an Allianz SE unit, said, however, “If more markets were to enter, I think we would have seen them by now.”
John Beam, Charlotte, North Carolina-based sports entertainment practice leader for Willis Towers Watson PLC, said, “The market’s healthy and it will continue to evolve in a positive manner,” assuming something else disruptive does not occur over the next couple of years.
“We’re still only a year away from (the pandemic). It’s going to take a year or two more … but I do think the market will make its way back there.”
Jason Sampson, London-based contingency underwriter at Beazley PLC, said in an email that, while the losses’ full impact remains to be seen, the outlook is positive. “While some uncertainty remains as to when we will return to ‘business as usual,’ we are already seeing an uptick in demand for contingency coverage,” he said.
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