PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1301817
PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1301817
The global entertainment insurance market is flourishing due to advances in technology and the adoption of high-tech equipment by the entertainment industry to provide the best possible experience.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global entertainment insurance market size estimated at USD 3.85 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the global entertainment insurance market size to grow at a CAGR of 10.50% reaching a value of USD 7.75 billion by 2029. The entertainment insurance market covers the entertainment industry, including film and television production, live events, sports, and music performances. The market is highly specialized and offers coverage for risks particular to the entertainment industry. Advancements in technology and the adoption of high-tech equipment by the entertainment industry to provide the best possible experience require the entertainment industry is expected to provide lucrative growth opportunities in the coming years. Entertainment insurance provides the policyholder with coverage against various risks, such as general liability, legal costs, and damage, to expensive cameras and equipment. Therefore, these are some of the major factors which will propel market growth.
As the entertainment business expands, movie directors and producers strive to provide their audiences with the best cinematic experience possible. Nowadays, movies are made with a lot of VFX and special effects, which cost a lot of money and need the use of innovative technology. The use of cameras for shooting movies and music videos has evolved, and with time, the quality of the movies is improving based on the type of camera used, and technology for VFX and special effects is being implemented to further enhance the experience. However, the cost of using such high-tech cameras and VFX is prohibitively expensive, necessitating the purchase of entertainment insurance to protect them from damage. As a result of technological advancements and the use of expensive equipment for making films and organizing entertainment events, demand for entertainment insurance is expected to grow rapidly in the coming years, providing major lucrative opportunities for the entertainment insurance market growth.
Stringent rules and regulations related to the entertainment insurance sector are expected to hamper the growth of the market. The entertainment insurance industry is governed by an enormous number of rules and regulations that control the types of coverage available as well as the terms and conditions of insurance policies. While these regulations are intended to protect consumers and ensure the insurance industry's financial stability, they can also create obstacles to entry and limit the growth of the entertainment insurance market. The requirement for insurers to maintain specified reserve funds and meet other stability requirements is one example of a regulation that can impede the growth of the entertainment insurance industry. These criteria might be difficult for smaller insurance businesses to achieve, limiting competition in the market and leading to higher policyholder rates.
The COVID-19 pandemic had an immense impact on the entertainment industry, which encompasses film and television production, live events, and sports. As a result, the pandemic affected the entertainment insurance market. The pandemic resulted in significant cancellations of film productions and live events, leading the entertainment industry to face significant financial losses. It also influenced the industry's insurance market, as many insurers had to pay out for policies covering cancellations and other losses due to the pandemic. In response to the pandemic, insurers reduced coverage limits and raised prices for entertainment insurance. This made it more difficult for entertainment enterprises to secure the necessary insurance coverage. Hence, the COVID-19 affected the growth of the global entertainment insurance market.
Based on coverage, the global entertainment insurance market is divided into liability coverage, commercial, property coverages, and other segments. Liability coverage is expected to be the fastest-growing coverage segment during the forecast period. Entertainment liability insurance protects performers from usual claims arising from their performances. This coverage can protect artists from both personal injury and product damage claims. The purpose of this coverage is to compensate the injured party in the event of a claim. It normally does not pay any legal payments or court costs incurred as a result of the case itself.
Based on distribution channel, the global entertainment insurance market is split into brokers and non-brokers segments. The brokers segment dominated the market and accounted for a significant market share. Entertainment insurance brokers assist entertainers in a variety of fields, including production, touring, staging and rigging, and special events. An entertainment insurance broker can assist in finding a competitively priced policy for the next film, whether professionals are working on a low-budget one-day shot or have a large budget for a special feature production.
Asia Pacific is forecast to cover a significant share in the global entertainment insurance market over the forecast period. The Asia-Pacific entertainment insurance industry was expanding steadily, owing to an increase in the number of film and television productions in the region. The Asia-Pacific entertainment sector has been quickly developing as a result of the expansion of digital platforms, such as Netflix and Amazon Prime, which has resulted in an increase in the production of original content. The Asia-Pacific entertainment insurance market covers a wide range of risks associated with film and television production, including accidents, illness, natural catastrophes, and equipment damage.
The global entertainment insurance market is highly competitive, with all the players continually competing to gain a larger market share. The key players are Allianz, Allen Financial Insurance Group, AXA XL Chubb, Everest Re Group, Ltd, Gallagher, Hub International, Higginbotham, Insurance Canopy, Marsh LLC, MFE INSURANCE BROKER, Next Insurance, Inc., Ryan Specialty Group, LLC, The Hartford, and Zensurance.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the Global Entertainment Insurance Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Entertainment Insurance Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.