Cost of cancelled events

blue2262

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There have been approximately 20 events lost due to bad weather ( excluding Badminton). If there were approximately 400 entries at each being refunded an average of £50, that is a total of approximately £400,000.
If the average abandonment insurance premium is £5, there needs to be 80,000 entries for the fund to break even so far this year. ( equating to more than 160 events!)
These figures are not accurate by any means, and the calculation is very simplistic but it does give an indication that the abandonment insurance is going to be in trouble!
What will happen next year? Will eventing become un-affordably expensive with no refunds for cancellation?.
 
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lynds81

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Thankfully it's paid to an insurance company, not just into a pot (I think). But then, what insurance company is going to offer the same insurance deal again!? Whoever underwrites it must be losing money hand over fist at the moment..

Eventing's expensive enough as it is :(
 

popsdosh

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You have to remember that if it is funded by insurance they take a long term view and I believe only 4 events all season were lost last year due to weather.
 

blue2262

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I realised my estimate would be low because I didnt factor in more expensive classes. I am greatly concerned about what will happen in future years, I just cant see the present system continuing. How exactly does it work at the moment? Do events keep all the entry fee or do they have to contribute to the refund the insurance pays?
 

BeckyD

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I've been interested in this and wondering about it for a week or so now. My day-job gives me a very doom-and-gloom perspective on financial issues, so I'd be glad if someone could enlighten me with positive news :)
 

popsdosh

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I realised my estimate would be low because I didnt factor in more expensive classes. I am greatly concerned about what will happen in future years, I just cant see the present system continuing. How exactly does it work at the moment? Do events keep all the entry fee or do they have to contribute to the refund the insurance pays?
There were nearly 90,000 entries last season and only 4 events they paid on I believe so I think the insurance company made a good underwriting profit last year .As I say they will take a long term view, It is only for about 4 seasons I believe the insurance has been in place.
The events do keep all the entry fees in the case of abandonment it used to be that the event refunded if abandoned and were then reimbursed their cost out of the BE abandonment fund.
This stopped a few years back and now you pay the premium which goes to the insurance scheme on top of your entry.I personally think there is nothing to panic about it is just normal underwriting risk.
 

LEC

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The season in 2008 was identical to this one hence why abandonment insurance was bought in as BE was hit hard by the cost of cancelling. Badminton would be privately funded as not run by BE though they get a cut of the profits but they are a mere drop in the ocean compared to the profit in good years.
 

Star_Chaser

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Shocking really how many events are cancelled this year not just horse events but dog events too some clubs are losing so much money that it may have an impact on their ability to run future events - so sad given all the hard work that goes into it.

Had to smile a bit though when I saw the mayhem at the IOW festival on the news - when even die hard festival go'ers have to call it a day you know that its a crap weather year. Used to be they just took the mud and slush and got on with it sales of wellies and black plastic bags went up.

I'm off to the opera soon lovely open air picnic if the weather holds but I have to say I am tempted to chuck a brolly and waterproofs in my bag :eek::D not sure will look very fetching with my dress though :D
 
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