Age-old problem: Veteran acts’ insurance dilemma

The increasing number of artists now touring well into their golden years are being faced with a dilemma due to the cost of cancellation insurance.

The list of evergreen legends heading out this summer includes Stevie Wonder, 74, Neil Young, 79, Bruce Springsteen, 75, Stevie Nicks, 76, Jeff Lynne, 77, Bob Dylan, 83, Iggy Pop, 78, and Paul Simon, 83, while 82-year-old Paul McCartney hit the road last year.

Meanwhile, Ozzy Osbourne, 76, who retired from touring on medical grounds in 2023, will take his final live bow when he reunites with Black Sabbath this July to headline all-star UK stadium concert Back to the Beginning.

Industry insiders recently told the Telegraph that “non-appearance” insurance for acts aged in their 70s and above can be between 10-15% of their fee, compared to just 1.5% for a young DJ, with the expense leading some to opt to press ahead and take their chances without cover.

“Statistically, the older the artists get the more probability there is of medical issues causing them to be unable to perform. And that is what pushes the premium rates up,” Tim Thornhill, MD of insurance broker Tysers Live told the British newspaper.

“|’m sure there are bands that tour without insurance… But that’s quite a dangerous situation”

Speaking to IQ, Steven Howell of Media & Music Insurance Brokers explains the decision on whether to take cover ultimately lies with the artist.

“Contingency insurance is primarily covering the artist’s financial losses due to death, accident and illness if this leaves them unable to perform or leads to cancellation of a show or tour,” he says. “As artists get older these risks become more likely to affect a tour, and therefore, the cost to insure against them increases. It is down to the individuals’ attitude to risk as to whether they decide to purchase the insurance or not.”

Miller Insurance’s Martin Goebbels says he is “sure there are bands that tour without insurance”, but describes it as “quite a dangerous situation”, recalling a case involving one of his former clients.

“One of the members became seriously ill and they cancelled a whole raft of shows – basically for a whole summer. And of course, it cost them an absolute fortune,” he remembers. “That impacted everything else they were doing in the following months, like recording, because the tour was meant to make them money and it was a lesson learned. On one hand, they could look at it and say, ‘Well, we haven’t paid a premium for so many years, so we’ve saved on that.’ But of course, they didn’t have that money in the bank, they’d spent it.”

John Silcock, group head of global entertainment for broker Meridian Risk Solutions, which acquired London Market Partners (LMP) Group last year, suggests the current state of play in the sector is a legacy of the pandemic.

“No one knew the rock and rollers would still be rocking and rolling in their 70s and 80s”

“The market suffered billions of dollars of losses, and there was a lot of retraction in terms of available capacity because insurers said, ‘We don’t want to be involved in this anymore,'” asserts Silcock. “As a consequence, rates started to really harden and really increase. I had a client call me up the year before last who said, ‘We’re going on the road again, give me an idea of costs for insurance,’ and it was 3x what they’d paid the last time they went out in 2018.”

Silcock notes that in decades past, the oldest artists undertaking global treks would be middle aged.

“Now, they’re in their 60s, 70s or even 80s, and it’s a very difficult thing for insurers, because when somebody reaches that age, we’re into uncharted territory in terms of the effects that touring might have on them,” he continues. “And actually, the amount of money that’s charged by the cancellation insurers isn’t that high when you consider the ages of the people involved.

“No one knew the rock and rollers would still be rocking and rolling in their 70s and 80s,” he concludes. “But that’s the nature of the business.”

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