Insurance awareness imperative
As global event insurance market accelerates, India faces limitations, leaving a void for M!CE coverage. Industry experts underscore low insurance adoption rates and urgent need for customized products.
By Janice Alyosius
According to an event insurance market research report by Allied Market Research, the global event insurance market was valued at US$726.9 million in 2022, and was estimated to reach US$2.3 billion by 2032, growing at a compound annual growth rate (CAGR) of 12.7 per cent from 2023 to 2032.
The increase in demand for event insurance is a key driver for the growth of event insurance market. There is a significant surge in the need for all-inclusive insurance coverage that takes a wide variety of risks into account as events continue to expand in size and complexity.
Naveen Kundu, Managing Director, EbixCash Travel said, “In India, event insurance is only available for large-scale events, making it the only country where such insurance is limited to big events. When an organization cancels an event without citing any reason, it becomes exceedingly difficult for the travel companies to claim refunds and navigate between the airlines and destination management companies (DMCs). Therefore, it is time to develop an insurance product specifically designed to safeguard the event industry.”
Sunaina Chatterjee, CEO, ICON Planners said, “Regular conferences, such as domestic or smaller-scale ones with 2,000-3,000 participants, the adoption of insurance in India remains relatively low. However, insurance is more common in some of the metro cities due to the involvement of numerous stakeholders.” In terms of percentages, 40-45 per cent of events in major cities such as Mumbai or Delhi incorporate insurance. However, the numbers drop significantly in smaller cities like Kolkata or Jaipur, ranging between 2-5 per cent.
The lack of awareness regarding available insurance and its significance is one of the reasons why event insurance is not widely adopted in the meetings and events industry. “The educational gap persists in India, affecting both conference organizers and participants,” Chatterjee highlighted. She also emphasized that even Professional Conference Organizers (PCOs) often lack knowledge about event insurance. The adoption of insurance is mostly considered when foreign committees organize events in India, as they are generally more aware of insurance in the M!CE industry.
It is time to develop an insurance product specifically designed to safeguard the event and conference industry
The perception that insurance is an additional cost and jugaad mindset contribute to the reluctance to adopt event insurance in India. Emphasising on the high insurance premiums,
Sudeep Sarcar, CEO, India Exposition Mart, said, “When dealing with international event organizers, there seems to be some level of uncertainty about choosing India as the host country for an event or conference due to the country’s vast size, which presents unforeseen contingencies along with opportunities. It can jeopardize the entire event, resulting in substantial losses. Although there are insurances available to protect against event cancellations, the associated premiums are exorbitantly high. It is crucial to address this issue and explore potential interventions to make the process more feasible. By implementing softer interventions, we can convince both domestic and international organizers to take calculated risks that might offset potential losses.” Such considerations by the country’s large and small event organisers can undeniably strengthen India’s position internationally as a M!CE destination.