Earlier quoted context omitted.
What I am hearing is SXSW cannot get the insurance payout if they unilaterally cancel the event. Thatswhy they have waited the city and Austin Public Health to make the decision for them. Same thing with SaaStr as well - They waited for the Santa Clara county to make the decision.
That's the rumor, but the statement they put out was absolutely ridiculous and in no way required for insurance. The organizers were willing to put people at risk for profit.
This makes the delays even more incomprehensible. Seems it wasn't greed after all; it was just sheer irresponsibility.