By Iola Edmayr, Executive Director, KEU Underwriting Managers
Extreme weather is no longer an occasional inconvenience for event organisers. It has become a defining risk for the clients brokers serve in the event sector, with climate volatility disrupting everything from local festivals to international productions..
Across regions worldwide, where seasonal rainfall patterns are increasingly unpredictable and wildfire conditions are intensifying, I’ve watched the need for climate-responsive insurance solutions shift from optional to essential. This is now a strategic concern for brokers serving the events industry, and it requires a proactive response.
Weather-related risks are reshaping the events landscape
Recent years have brought a surge in climate-related disruptions that we can’t ignore. According to the United Nations Environment Programme, wildfires are projected to increase by up to 14% globally by 2030. This puts mounting pressure on insurers and event planners alike.
But it’s not just extreme weather that leads to cancellations. Many outdoor events are sensitive to very specific conditions. Horse racing may proceed in light rain, but a waterlogged track will result in cancellations. Airshows are called off for low-hanging clouds that reduce pilot visibility. Cricket fixtures are interrupted due to excessive cloud cover or lighting issues. Even city-wide events like the Cape Town Marathon or the Cape Speed Festival face disruption if high winds or smoke from nearby wildfires create safety concerns.
Understanding these variables is essential when structuring appropriate cover. What might appear to be manageable conditions could still render an event uninsurable or financially devastating without the right support in place.
With Event Cancellation, the impact is immediate and severe. Extreme flooding in KwaZulu-Natal in 2022 resulted in widespread cancellations and long term damage caused by the floods , like polluted water making it unsafe to partake in water sports.
Events held outdoors are particularly vulnerable. Concerts, sporting fixtures, expos and community festivals often rely on complex logistical arrangements that can be derailed by high winds, heavy rains or heatwaves. For organisers, these disruptions translate into significant financial losses from sunk costs and contractual penalties.
For insurance brokers, the question becomes critical: are your clients adequately covered?
Event cancellation insurance as a climate risk tool
Event cancellation insurance offers a vital financial safeguard when adverse weather leads to delays, abandonment or complete cancellations. At KEU Underwriting Managers, this cover forms a core part of our event risk management strategy. It enables clients to recover unrecoverable costs and lost income, provided the cause falls within the policy scope and policy conditions are met.
Our Event Cancellation Insurance Solution automatically includes cover for venue inaccessibility and unavailability. Extensions are also available for the non-appearance of essential performers or Riot and Strike which is an ever concerning risk for South Africa. The inclusion of weather extensions is critical, but these must be arranged well in advance of the event date. Premium payment and final budget submission are also required at least 14 days prior.
I’ve seen a measurable increase in queries from brokers regarding weather-related event risk over the past three years. As climate uncertainty grows, cancellation insurance is no longer a luxury. It’s become a fundamental safeguard brokers should be recommending to clients involved in public-facing productions. In many cases, it’s now a necessary component of financial planning, not an afterthought.
To learn more about our event cancellation insurance solution, brokers can explore detailed product information on our website.
Liability considerations in an era of extreme weather
While event cancellation insurance protects against financial losses, it’s not the only cover affected by changing climate conditions. Event liability insurance also warrants closer scrutiny. As storms become more frequent and infrastructure is strained, the risk of injury or third-party property damage increases.
Temporary structures such as marquees, stages and elevated platforms are particularly susceptible to collapse in strong winds. When this happens, clients may still be held legally liable for damages, but with a broker-arranged policy that accounts for these specific exposures, they’ll have the necessary cover in place to protect them.
Ensuring appropriate limits of indemnity and including relevant extensions, such as cover for sub-contractors and temporary construction, is good practice in today’s climate-aware environment. This isn’t theoretical. It’s a practical exposure that I see regularly in underwriting submissions.
More information is available on our event liability insurance solution page, where brokers can explore tailored cover options for various event types.
Climate change and event planning in South Africa
As the events industry regains momentum post-pandemic, South Africa is seeing a resurgence of outdoor experiences, from regional music festivals to heritage celebrations. But this revival coincides with growing concern about infrastructure resilience and emergency response planning.
Municipalities are under increasing strain to maintain roads, water systems and power supply, all of which are essential to event continuity. Insurance alone can’t offset poor planning, but it remains a key lever in protecting clients against the financial consequences of climate-induced failures.
Brokers need to support clients in adopting an integrated risk approach. This includes not only adequate insurance but also contingency plans, supplier contracts with force majeure provisions and clear communication protocols for weather monitoring.
For brokers, having these conversations with clients is an opportunity to demonstrate real value and ensure comprehensive protection. It positions you as a trusted adviser, not simply a policy placer.
Building resilience in the face of growing climate threats
Climate risk insurance for events is no longer a specialised offering reserved for large-scale productions. It’s increasingly relevant for clients managing local events and lean productions that operate on tight budgets and timelines.
The frequency and impact of climate-related disruptions are rising. I’ve watched this trend unfold across the industry, and the data supports what we’re seeing on the ground.
Brokers who understand this shift and proactively structure appropriate cover for their clients will be better positioned to support long-term sustainability in the events sector.
For brokers working with organisers of outdoor events, exhibitions or festivals, now is the time to assess policy limits, confirm weather-related extensions and consider specialised cover such as flood insurance for events.
KEU Underwriting Managers remains committed to supporting the South African events industry through targeted insurance solutions and broker-first service. To explore our full suite of event-related cover, including outdoor event insurance, please visit our website.
