State of the Insurance Market:
2025 Outlook

Entertainment

The entertainment insurance industry anticipates some emerging trends will shape the landscape within content creation and live entertainment in 2025, including mergers and acquisitions (M&A) artificial intelligence (AI) integration/technological innovation, shifting consumer preferences, inflation, and security.

Additionally, there are still traditional risks impacting the industry including extreme weather, social inflation, civil unrest/geopolitical instability, and labor strikes. The massive California wildfires at the start of 2025 impacted not only the personal lives of many Californians, but also the production and film industries.

The film and television industry remains strong with a great deal of new production being greenlit. Coverage availability for specialty production insurance (PI) is very good with the existing markets; and there may be new players entering the PI market this year. We expect rates to remain essentially flat for 2025.

Market Conditions

 

The entertainment insurance segment has generally recovered following the massive pandemic-related losses. It has shown stability and profitability for insurance companies, even in the face of entertainment union strikes and other macroeconomic factors. Several carriers entered the space on the commercial production side with aspirational views of extending coverage into other areas of content creation and theatrical business over the next 6 – 12 months. Rates are competitive for clients with positive loss profiles, limited auto exposure, and located/filming outside of catastrophe (CAT) zones/areas with extreme weather exposure. The overall limited size of the market creates challenges, driving market rates down to the pre-pandemic levels.

Large, highly desirable accounts take advantage of scale and look to drive pricing and terms to a greater extent than small/medium-sized firms. Insurers utilize a more disciplined underwriting approach and rigidity around certain coverage areas. The impact of the Los Angeles wildfires and corresponding associated losses to insurers writing this class of business will become evident over the coming months and may have impacts on pricing and potential coverage offerings going forward. It’s not outside the realm of possibility that carriers take a more holistic view of emerging climate change-associated risks and underwrite accordingly.

Coverage Considerations

 

The insurance marketplace for commercial production remains limited, and carriers remain disciplined on underwriting and profitability. Barring an unforeseen industry-wide claims scenario, macro-level exposure issues, or serious new carriers, we do not anticipate significant changes from the current rate environment. Carriers are looking to shore up policy terms and conditions and address deductibles or retentions, where necessary, on loss-driven accounts.

Rates have flattened for standard productions, but underwriting has become more stringent for audience participation/immersive productions and shows that contain higher-risk activities like strenuous choreography.

Specialty coverage (production, event cancellation, etc.) rates for film, TV, and contingency businesses have remained relatively stable. However, insurers are focusing on profitability and strict underwriting — most notably for performance disruption, non-appearance, and weather-prone cancellation risks.

  • Licensing contracts with venues continue to be challenging, with requirements for shows to carry additional coverage and potentially higher limits, which increase premiums.
  • For theater owners, the premiums associated with construction and renovation projects rose significantly for larger jobs where the incumbent carrier is unwilling to roll the coverage into the existing program. We anticipate this trend will continue due to limited capacity.
  • Many performing arts venues have embarked on significant renovation projects in theaters. Construction on these facilities remains challenging and can impact premium. Contract reviews are vital to ensure proper wording. Make sure insurance requirements and indemnification clauses are in place.
  • Live performances still see significant challenges in primary general liability and excess. New market appetite may result in an opportunity for accounts to be marketed, leading to price/coverage enhancements.
  • In liability, carrier loss ratios have deteriorated due to claims frequency and severity. As a result, the market remains tough, with large premium increases. We are aware of key carriers reserving up to eight-figure losses in this coverage sector.
  • The venue marketplace has not faced the same challenges. However, rates depend highly on the type of event, size, and the loss experience of the individual client. For some types of events, market capacity and terms have not returned to pre-pandemic levels.
  • Umbrella capacity remains limited, with high limits difficult to obtain for Broadway and theatrical tours. For other classes of live performances and venues, rates continue to rise by about 7.5% to 10%.
  • Broadway show production budgets continue to rise, which has led to increased premiums for certain lines of coverage.
  • The emergence of new capacity for events, live performances, and production could create a more competitive environment over the next 6 -12 months.
  • The film and television industry remains strong, with many new productions being greenlit. Coverage availability for specialty PI is very good, with the existing markets. There may be some new players entering the PI market this year, but we expect rates to remain essentially flat for 2025.

Entertainment Rate Forecast

 
Rate Forecast
Commercial Production/Advertising Flat to +5%
Film/TV Flat
Broadway/Theater Flat to + 5%*
(except Umbrella at +7.5%)
Contingency/Event Cancellation +2% to +5%*
* Depending on type of risk, geographic location, proximity to extreme weather, and coverage options

Recommendations

 

Navigate the current insurance landscape by aligning with an experienced specialty broker who is familiar with entertainment insurance and can adequately assess your coverage needs.

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Start renewals promptly and well in advance of policy renewal date.

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Prepare granular, detailed underwriting information.

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Be prepared to discuss exposure around both existing and emerging risks.

Entertainment-Recommendations-SOTM-2024
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The Risk Strategies Entertainment Practice is a top industry leader with a long history of leadership in delivering unparalleled insight and innovative solutions to the entertainment industry.

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The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.