LONDON, Aug 9 (Reuters) - Insurers face millions of

dollars in claims after a foiled attack forced three Taylor

Swift concerts in Austria to be cancelled, though several

providers will share out the hit, two people involved in

insurance for her tour told Reuters.

The concerts in Vienna were cancelled this week after a

planned attack at the Ernst Happel Stadium. Some 195,000

"Swifties" had been expected to attend, with many travelling

from abroad for a chance to see the pop superstar.

Barracuda Music, the concert organiser, said all tickets

would be refunded within 10 days. It could not immediately be

reached for comment about insurance arrangements.

Swift is popular among insurers as she rarely cancels

concerts, a third insurance source said. Her celebrity and

success mean that most specialist event cancellation insurers in

London would be involved in covering her tour, one of the

sources said. The sources declined to be named, citing client

confidentiality.

Organisers of large sporting and entertainment events

typically buy event cancellation insurance, much of which tends

to be insured through the Lloyd's of London market by

a consortium of insurers.

A Lloyd's of London spokesperson confirmed that event

cancellation insurance is offered at Lloyd's, but said it could

not comment on specific policies.

Militant attacks are often excluded from event cancellation

policies, but policyholders typically buy extra cover against

them, or the threat of them.

"The standalone terrorism cancellation insurance policy

would have been triggered by the terrorism act or threat clause

within the policy, as there has been a known potential terrorism

event," said Tim Thornhill, managing director at broker Tysers.

Reuters could not establish the extent of cover on the

concerts. Marcos Alvarez, managing director for global financial

institution ratings at Morningstar DBRS, said losses from the

cancellations could be in the tens of millions of dollars.

Alvarez said insurance losses were likely to be limited by

the fact that the concerts could be rescheduled.

The cover was structured so that insurers would not be on

the hook for a full cancellation of the tour, said Andrew

Colcomb, head of syndicate research at Argenta Private Capital,

based on his analysis.

Swift's Eras tour is estimated to generate nearly $2 billion

in ticket sales.

Event cancellation insurance typically also covers delay,

moving the event to another location, rent for the venue, the

artist's pay and ticketing.

The policies can be taken out by local or international

organisers, and artists can add their own policies to make sure

they get paid for the event if it is cancelled, industry sources

say.

The stadium would also typically have event cancellation

insurance, said Loretta Worters, vice president, media relations

at the U.S. Insurance Information Institute.

"Assuming this is an isolated event, we believe that most

insurers will remain comfortable with their exposure to

cancellation insurance products," Alvarez said.

Going forward, he added: "insurers could restrict the

coverage available for cancellation insurance due to terrorism,

given increasing political tensions around the world".

Leigh Ann Rossi, senior vice president, sports and

entertainment group, at broker NFP, also said she didn't think

"this one-off concert claim will move the needle in the

marketplace".

She added, however, that "should this become a pattern or if

something happens in Paris at the Olympics, these could have

impact on the marketplace".

British police said on Thursday there was nothing to

indicate the planned attack would have any impact on Swift's

return next week to Wembley Stadium, London, for her five final

shows in Europe.

Any extra security for the concerts would "create a

significant challenge" for the police, said Rich Phillips, head

of crisis, resilience and reputation consulting at insurance

broker Marsh, particularly as officials are on high

alert after days of rioting in Britain involving racist attacks

targeting Muslims and migrants.