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AGCS at the Oscars!

21 February 2020 Allianz Global Corporate & Specialty (AGCS)

As with every year, AGCS had a “front-row seat” at the 92nd Academy Award “Oscars” ceremony and also played a major supporting role in this year’s Best Picture category, insuring every Best Picture nominee bar one, including movies produced by new customers.

AGCS’ history in motion pictures runs deep, spanning over 100 years into Hollywood’s silent beginnings – even before the first Oscars ceremony on May 6, 1929. We’ve become a leading insurer of Hollywood during that time.

From the Keystone Cops and Charlie Chaplin to Spartacus, The Godfather “threequel”, Apocalypse Now, Harry Potter and the latest Marvel superhero films, not to mention all 25 James Bond films – we’ve insured thousands of Hollywood blockbusters, many of which have been nominated for – and won – Oscars.

This year was no different. Of the nine Best Picture nominees (see box) – which together have earned a whopping $2bn worth of receipts at the box office with over half of that coming from one movie, Joker – AGCS is insuring every nominee bar one, including movies produced by new customers.

“AGCS has a long history at the movies. Our outstanding reputation is why today every second or third blockbuster is insured by us. We have built up true trust relationships over the decades and that’s why we are the insurer of choice for so many companies,” says Wanda Phillips, Head of North America Entertainment Insurance AGCS.

AND THE WINNER IS….
2020 BEST FILM NOMINEES

FORD & FERRARI [$222mn]
*THE IRISHMAN [$961k]
JOJO RABBIT [$65mn]
JOKER [$1.1bn]
LITTLE WOMEN [$163mn]
*MARRIAGE STORY [$323k]
ONCE UPON A TIME … IN HOLLYWOOD [$389mn]
PARASITE [$163mn]

*Netflix does not release live streaming sales figures; figures shown were box office receipts for limited theatric release in limited cities
[GLOBAL BOX OFFICE RECEIPTS AS OF FEBRUARY 4, 2020]

ENTERTAINMENT INSURANCE? – IT’S A WRAP

The global entertainment and media market is big business, expected to reach $2.6trn in 2023. In the US, alone, the market is expected to grow to over $720bn this year from $678bn in 2018 .

Although insurance figures are difficult to come by, Hollywood commands the most premiums with an estimated $400mn annually in 2019, followed by the UK with approximately $40mn to $50mn, China at $45mn and growing, and France and Germany at around $45mn and growing.

Typically – depending on genre, insured budget, deductibles and other risk factors – insurance premiums can range from 0.6% to 1% of a movie's total budget, which could amount to between $1mn to $2mn for a $200mn movie.

Besides full-length movies and their production, insurance also covers TV shows and so-called DICE productions – documentaries, industrial, commercial and educational productions – as well as all elements of post-production, including computer-generated imagery (CGI).

Technology has changed the movies. Movie magic used to be added in post-production, but now visual effects are integral to principal photography. Underwriting complex, computerized visual effects is challenging, to say the least. Digital technology, visual effects, extravagant live events and other trends are changing the industry. With new technologies, however, cyber vulnerabilities are growing.

ENTERTAINMENT INSURANCE COVERAGES

Entertainment insurance covers cost and extra expense resulting from potential delays due to injuries to actors or props/sets/equipment damage and equipment breakage. What specifically is covered?

DICE: documentaries, industrial, commercials and educational productions
Advertising agency DICE post-production
Independent films
Motion picture studio productions
Photographers
Post-production facilities
TV production

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QUESTION

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