Punters – and insurers – hold their breath
Hundreds of businesses connected with the racing and equestrian industries are checking the fine print on their insurance policies this week. The equine flu outbreak that has stopped all movement of horses in NSW is set to cost the state’s economy hundreds of millions of dollars in lost business.
Races were cancelled throughout the nation (except Darwin) last weekend. Racing Victoria says its calendar will continue as normal from Friday but racegoers in NSW will face an indefinite ban.
Experts have been loath to predict the total economic impact of the flu outbreak. Country centres have been hit particularly hard as pony clubs and the traditional agricultural show circuit are forced to amend their programs. But it is in the racing and associated gambling industries that the shutdown has had the most marked impact.
Insurers of racehorses are confident there will be few claims to concern them. Specialist broker Logan Livestock says there is very little chance of actual horse fatalities. Like human influenza, those most at risk are the very young and very old – horses unlikely to warrant significant insurance coverage.
Insurance claims are far more likely under business interruption clauses. “The impact will be in stallion loss of income,” MD Richard Logan said. “But the horse industry is used to dealing with that.” He says the most marked effect will be on the insurers of competition organisers and gambling providers.
Tabcorp says it will have lost $150 million in turnover by the end of this quarantine week. CEO Elmer Funke Kupper says that significant initial loss will be reduced as non-NSW racing centres open up.
“Tabcorp will closely monitor the impact of the equine influenza situation on its wagering division and on its industry and distribution partners,” he said. But the company refused to be drawn on whether the losses were covered under business interruption insurance.
Races were cancelled throughout the nation (except Darwin) last weekend. Racing Victoria says its calendar will continue as normal from Friday but racegoers in NSW will face an indefinite ban.
Experts have been loath to predict the total economic impact of the flu outbreak. Country centres have been hit particularly hard as pony clubs and the traditional agricultural show circuit are forced to amend their programs. But it is in the racing and associated gambling industries that the shutdown has had the most marked impact.
Insurers of racehorses are confident there will be few claims to concern them. Specialist broker Logan Livestock says there is very little chance of actual horse fatalities. Like human influenza, those most at risk are the very young and very old – horses unlikely to warrant significant insurance coverage.
Insurance claims are far more likely under business interruption clauses. “The impact will be in stallion loss of income,” MD Richard Logan said. “But the horse industry is used to dealing with that.” He says the most marked effect will be on the insurers of competition organisers and gambling providers.
Tabcorp says it will have lost $150 million in turnover by the end of this quarantine week. CEO Elmer Funke Kupper says that significant initial loss will be reduced as non-NSW racing centres open up.
“Tabcorp will closely monitor the impact of the equine influenza situation on its wagering division and on its industry and distribution partners,” he said. But the company refused to be drawn on whether the losses were covered under business interruption insurance.