By Iola Edmayr, Executive Director, KEU Underwriting Managers
South Africa’s events landscape continues to draw significant public attention. This year has been no exception. The Cape Town Marathon once again demonstrated the discipline and planning required to execute a world-class event. At the same time, the proposed Kanye West concert at Ellis Park on the 13th of December generated substantial discussion across media and social platforms.
The circumstances surrounding these two events are vastly different. Yet the level of interest they received highlights an important truth: high-profile events carry exposure that extends far beyond what is visible to the public. The insurance considerations behind them are more nuanced than many realise.
I have spent years underwriting film, events and entertainment. What I observe consistently is how public scrutiny increases when the stakes are high. The industry has seen a rise in unpredictable weather, heightened financial pressure and complex logistical requirements. These dynamics have made event cancellation cover a critical resource for organisers, particularly where significant reputational and financial commitments are involved.
A landscape shaped by uncertainty and expectation
Risk in the event sector has never been static. Even well-planned events face conditions beyond the organiser’s control.
The Cape Town Marathon is a relevant example. Despite its strong leadership and meticulous organisation, the event remains vulnerable to adverse weather. Heavy rain or lightning can force schedule changes that protect participant safety but create substantial financial consequences. This type of exposure demonstrates why event cancellation cover is essential, even when the organiser has done everything correctly.
The public conversation around the Kanye West concert illustrates a different dynamic. When an international performer is central to an event, non-appearance becomes the primary exposure. A concert of this nature cannot proceed without the main act. This is why cover for non-appearance is one of the most critical components for events of this scale.
The media attention surrounding the proposed concert provides a timely reminder of how vulnerable high-profile performances can be. Uncertainties around contracts, travel, wellness, logistics or the readiness of the local promoter create real exposure. These risks exist regardless of who the performer is. They form part of the broader framework that brokers need to consider.
Understanding what organisers prioritise
When advising clients, brokers play an essential role in helping organisers understand the financial focus of their event.
The first and most visible component is ticket sales. Many organisers prioritise cover that allows them to reimburse attendees if an event cannot proceed. For high-demand concerts, this can represent a substantial sum of money. Without appropriate cover, the organiser becomes responsible for refunding thousands of ticket holders, which may not be financially possible.
The second focus is expenses. Events require advance payment to suppliers for staging, lighting, sound, décor, security and staffing. These costs are incurred whether the event proceeds or not. Event cancellation cover that includes expenses allows the organiser to recover these amounts if cancellation occurs due to an insured peril. It ensures suppliers are paid, contractual obligations are honoured and relationships remain intact.
The third consideration is sponsorship. Many high-profile events depend on brands for financial support. Sponsorship contracts often stipulate that organisers must maintain cancellation cover. Failure to comply with these requirements can jeopardise long-term partnerships. Sponsors need the confidence that their financial contribution is protected, particularly where the event has significant public visibility.
Event cancellation versus individual event insurance
It is important for brokers to distinguish between event cancellation insurance and individual event insurance. The two policies serve different purposes.
Event cancellation insurance is designed for the organiser. It responds to financial losses arising from perils outside the organiser’s control. This may include non-appearance of a performer, severe weather, riots, strikes or terrorism. The scope of cover depends on the policy wording and must be aligned with the specific exposures of the event. It reimburses expenses, ticket sales and sponsorship commitments, making it vital for events with high financial stakes.
Individual event insurance, on the other hand, is taken out by ticket holders. It does not cover the cancellation of the event itself. Instead, it protects the individual attendee if they are unable to attend due to unforeseen circumstances such as illness, accident, death, retrenchment or travel delays. This product is optional but can create peace of mind for those travelling long distances or making significant financial commitments to attend.
Strengthening broker advisory capacity through early planning
As exposure becomes more complex, early underwriting becomes increasingly valuable.
When brokers engage organisers before marketing begins or before tickets go on sale, they can provide far more effective guidance. This includes confirming budget accuracy, reviewing supplier agreements, assessing weather-related vulnerabilities and understanding the performer or talent component. Many organisers underestimate the time required to secure comprehensive cancellation cover, particularly when the event has international elements.
Early planning also reduces uncertainty. Many of the issues that attract public speculation come from incomplete information, outstanding documentation or pending approvals.
A structured insurance approach helps organisers meet contractual obligations and demonstrates their commitment to operational readiness.
Looking ahead
The events of this year reveal how rapidly circumstances can shift. Whether it is a marathon that must contend with weather risks or a global artist whose appearance is essential to the viability of a concert, the need for robust cancellation cover has never been more pronounced.
I remain committed to supporting brokers with the clarity, technical insight and specialist products required to protect clients operating in this dynamic sector. The more unpredictable the environment becomes, the more valuable strong partnerships and proactive risk management will be.
Brokers remain central to that process. I look forward to continuing our work together as the industry prepares for another year of significant activity.
