Insurance

28 November 2017, Bloomberg article speculates Mandalay Bay/Vegas concert massacre might cost over $1 billion in insurance payouts

Bloomberg writers Hannah Levitt and Sonali Basak penned the article, “Las Vegas Massacre Could Cost Insurers More Than $1 Billion,” on 10 November. To date, the exactitudes of insurance payouts, the companies involved, what policies did and did not cover, etc., are not forthcoming because it is too early in this sure-to-be contentious liabilities case. Nevertheless, Levitt and Basak offer insight into some of the pressing issues at stake. Highlights of the article are as follows:

  • A multitude of lawsuits could drive the insurance bill for the Las Vegas massacre (called a “man-made disaster” by the insurance industry) to over $1 billion, and that they might continue for years
  • The insurance sector this year (2017) has had to deal with a series of massive payouts, perhaps $130 billion, because of hurricanes, earthquakes, and wildfires, [and, therefore, it is likely to resist additional payouts…commentary here by Muir Analytics]
  • The insurance sector last year (2016) had to deal with a series of massive payouts for man-made disasters that cost $7.8 billion
  • Insurance payouts in the Las Vegas massacre case will include, but not be restricted to: physical damages, hotel and event planner liabilities, workers’ compensation, festival refunds, liabilities tied to lawsuits, business losses due to cancellations, brand damage, and etc.
  • Modeling “perpetrators who can single-handedly cause catastrophes” is increasingly a subject of interest in the insurance sector
  • Live Nation, the company associated with the Vegas concert massacre, previously suffered a mass casualty attack this year in May, the ISIS suicide bombing of the Ariana Grande concert in Manchester, UK

Insurance payouts associated with this case are likely to make further headlines, not just regarding the size of payouts, but also possible legal wrangling between the insured, the insurers, and the interpretation of their policies.

Sources and further reading:

Las Vegas Massacre Could Cost Insurers More Than $1 Billion,” Bloomberg, 10 November 2017.

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