Taylor Swift’s Cancelled Concerts Due to Terrorist Threat Could Cost Insurers

Taylor Swift has had to cancel concerts planned in the Austrian capital due to a planned terrorist attack, and the cancellations will lead to some insurers having to cover a large sum, according to Reuters.

The outlet reported Friday that two unnamed sources “involved in insuring his tour” said a handful of insurers would see costs associated with the cancellation of shows at Ernst Happel Stadium.

Swift is popular with insurers because she rarely cancels concerts, a third insurance industry source told Reuters. Her fame and success mean most insurers specializing in event cancellations in London would be involved in covering her tour, one of the sources said.

The sources declined to be named, citing client confidentiality.

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Organisers of major sporting and entertainment events typically take out cancellation insurance, much of which is typically secured through Lloyd’s of London from a consortium of insurers. They often get terrorism cancellation cover on top of that, the outlet said.

On Friday, as part of the ongoing investigation into the terrorist plot against the three Swift concerts, three suspects were taken into custody by the Austrian authorities. All three were teenagers.

Marcos Alvarez, managing director of global financial institutions ratings at Morningstar DBRS, said losses from the cancellations could run into the tens of millions of dollars.

Alvarez said insurance losses would likely be limited by the fact that concerts could be rescheduled.

The coverage was structured so that insurers would not be liable for a total cancellation of the trip, said Andrew Colcomb, head of syndicated research at Argenta Private Capital.

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Taylor Swift kicked off her wildly popular Eras Tour featuring songs from her extensive music catalog in March 2023, with each show attracting massive fan followings. The international tour began last August.

The show underwent some changes in May, when it began incorporating music from its latest album, “The Tortured Poets Department,” into the schedule.

Pollstar estimated late last year that the tour, which includes concerts in London later this month and the United States in October, could gross $2.165 billion.

Between November 2022 and November 2023, the Eras Tour grossed $1.04 billion, according to Pollstar.

The success of her tour helped make Taylor Swift a billionaire. Forbes estimates her current net worth at $1.3 billion.

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The Eras Tour was also the subject of a record-breaking concert film, “Taylor Swift | The Eras Tour,” which will be released in mid-October 2023.

Greg Norman of Reuters and Fox News Digital contributed to this report.