Brokers ‘positive about entertainment insurance’ as industry emerges from crushing pandemic-related losses

As the entertainment and events industry emerges from COVID-19, Canadian brokers are becoming more confident about securing coverage for their clients.

Claims from cancelled or postponed events and productions have been a large source of pandemic-related losses for the global insurance industry, said Thomas Sepp, chief claims officer with Allianz Global Corporate & Specialty (AGCS), in October 2020.

However, things are looking up.

Rorie McIntosh, CEO of Oshawa-based McCAM Insurance, told Canadian Underwriter that while the entertainment industry is not yet back to normal and some insurers have backed out of offering coverage altogether, brokers expect to see a surge in productions.

“We believe the future of brokerages who do entertainment is very positive,” McIntosh said.

McIntosh said McCAM’s specialist entertainment insurance brokerage, Marquee Insurance, saw smaller productions (like made-for-TV) recover last fall due to short shooting schedules and fewer people on set. Live theatre productions, however, halted operations last year.

Coverage liability and the added cost of production interruptions remained a common concern. Unlike traditional lines of insurance, it was not uncommon for entertainment policies to write-back cover for infectious diseases, AGCS said.

McIntosh said the pandemic has pushed more people toward streaming platforms. That demand, together with live events resuming and theatres reopening, means demand for content “should see a massive resurgence in productions across the board.”

And with new COVID-19 protocols in place for events and productions, and the risk profile of production companies continuing to evolve, governments and MGAs are stepping back into the game.

Last week, Lloyd’s announced it launched a £750-million ($1.3-billion) government-backed pandemic insurance scheme for live events in Britain.

After intense industry lobbying following cancelled events due to a lack of insurance during the pandemic, the British government said it would act as reinsurer, with Lloyd’s of London and its syndicates Beazley, Hiscox and Munich Re providing coverage.

“Depending on the risk, there are some MGAs too that we can go to…so we feel confident we can still place business that comes in,” added McIntosh.

 

Feature image via iStock.com/bjones27