The events insurance market in Canada is firmly in soft territory – and the trend is expected to continue. With festivals facing tighter budgets, Gen Z showing less interest in street-level gatherings than previous generations, and Canadians rethinking their discretionary spending amid inflation, the pool of potential insureds is shrinking.
At the same time, the frequency and severity of claims are on the rise, creating additional pressure for insurers operating in the space.
That’s according to Heather Moyer, underwriting director at K&K Insurance Canada, who says that the industry has been struggling since COVID.
According to Moyer, the landscape for events insurance has changed dramatically over the past two decades. When she entered the industry 20 years ago, only a handful of specialty MGAs were active in the sports and leisure space. Today, that number has ballooned to over 100 – all vying for a client base that is steadily contracting.
“We’re all fighting over the same small (and still decreasing) number of events,” she told Insurance Business.
This intensified competition has placed downward pressure on premiums, with carriers undercutting each other to secure business in an increasingly saturated market. But Moyer emphasized that price alone shouldn’t be the driving force behind underwriting decisions. In a soft market, diligence and risk management matter more than ever.
“I think the companies that really, truly understand the space are going to be the ones that are there after a few years,” she said.
Moyer noted that the current softness in events insurance mirrors a broader trend playing out across the Canadian insurance landscape. Premiums are falling across multiple lines, even as claims become more frequent and more expensive due to inflation and a rise in extreme weather events.
This imbalance is straining underwriting margins, and making it increasingly important for insurers to identify and reward strong risk mitigation practices. For events coverage, that means prioritizing clients who invest in preventive measures like proper barricading, robust security, and thorough contingency planning.
Beyond market dynamics, the post-pandemic reality has introduced new pressures for event organizers – many of which directly impact insurability. Moyer emphasized that since COVID, many festivals have lost the core of their volunteer base, leading to organizational gaps and reduced operational capacity.
“Festivals are really hurting financially,” she said, adding that event organizers are struggling to pay their staff, and find a way to win over again their long-standing volunteers.
Compounding this is a notable shift in audience behavior. As inflation chips away at disposable income, attendees are becoming more selective about which events they attend – and have higher expectations when they do.
“When people do spend that precious money to go to a festival, they're expecting more,” Moyer said.
Another emerging factor with potential implications for the events insurance sector is the recent wave of tariffs and their ripple effect on cross-border event attendance. While it’s too early to assess the full extent of the impact, Moyer noted that early signs suggest a reduction in American visitors at Canadian festivals.
While this may sound like a loss for event organizers trying to maximize ticket sales, Moyer pointed out an unexpected upside from an insurance standpoint.
She said that American attendees are generally more likely to pursue legal action than their Canadian counterparts, and since they aren’t covered by provincial healthcare, any injuries they sustain at events can result in much higher costs for insurers.
While fewer US guests may lower liability risk and claims severity in some cases, the overall financial picture remains difficult for many festivals.
“They were all suffering financially already,” Moyer said. “I can’t imagine [tariffs] will help.”
As the events landscape continues to evolve, insurers are also adapting to new realities and shifting risk profiles. One of the biggest emerging trends is the growing demand for event cancellation insurance, particularly in response to unpredictable weather conditions and climate-related disruptions.
“Wildfire smoke has become a real concern,” Moyer said, noting that several Canadian insurers have only recently started offering cancellation coverage specifically for smoke-related issues.
Alongside climate risks, changing audience demographics are reshaping the event scene itself. While younger generations like Gen Z are showing less enthusiasm for festivals than their predecessors, organizers are increasingly pivoting toward more family-friendly programming and older attendees who still have the disposable income to participate, she added.
These demographic shifts bring implications not only for event planning but also for risk assessment. Insurers are now placing greater emphasis on crowd composition, substance use, and venue dynamics when evaluating coverage. Everything from age ranges and the presence of alcohol to the potential for heightened crowd tension is taken into account as part of underwriting diligence.
“Everything matters,” Moyer said.
