Allianz Global Corporate & Specialty (AGCS) has opened its Entertainment insurance division in Asia with a launch in Singapore.
With nearly half of the world’s movie production taking place in Asia and large-scale live events and music tours on the rise, Entertainment is an important growth sector in Asia as more organisers look for insurance solutions to protect their events and productions.
Since integrating Allianz’s US subsidiary Fireman’s Fund in 2015, AGCS has been expanding its Entertainment division to support customers in new markets beyond North America. In Asia, the first phase of expansion includes Singapore, Hong Kong and China.
The Entertainment product line is the latest addition to a growing AGCS Asia book that contributed 6% to overall global premium volume of EUR7.4 billion (US$9.1 billion) in 2017. Mr Damian Kerin, Head of Entertainment Asia Pacific, will oversee this new division.
Mr Mark Mitchell, Regional CEO AGCS Asia, said: “The film production and event industry is a thriving and fascinating business in Asia. Allianz has offered Entertainment solutions for decades in the US market and successfully expanded to Europe recently. Now we are targeting Asian markets with our expertise and market-leading solutions for film and events insurance. The Entertainment line is a good fit for our portfolio of offerings to clients, as we already offer complementary solutions which support the film and events industry such as cargo insurance for touring acts. We also see an increase in clients organising events, commercials and advertising so our Entertainment product allows us to offer them a full set of solutions all under the AGCS brand, providing them with wide coverage, global reach and financial stability.”
As the leading player in the global Entertainment insurance sector with over 100 years’ experience, AGCS covers production and live event risks such as commercials and TV series, as well as international productions and cinema blockbusters, against loss of property damage to props, additional costs or liability claims. Almost every other major Hollywood blockbuster is insured by AGCS, including all 24 James Bond movies to date.
In the area of events, AGCS insures concerts, festivals, tours and sporting events, taking over the financial consequences of an event failure or liability claims. AGCS can also insure the cancellation of events due to emerging risks such as pandemics and terrorism. In addition to the reimbursement of damages, AGCS also advises event organizers on film and event risk management.
Growth opportunities in Asia
According to international professional services firm PWC, the Media and Entertainment sector is estimated to grow by an average of 5% per year globally till 2019. In particular, AGCS sees significant opportunities in Asia, which is estimated to beat the global average and grow by an average of 6% per year in the same period.
UNESCO statistics see Asia dominating the film industry, accounting for nearly half of the world’s movie production with 44% of movies produced in 2015. The live music segment is also thriving, as global brands like US dance festivals Ultra Music Festival and Electric Daisy Carnival, and UK festival Creamfields have expanded and made their debut in Asia in recent years.
Increasing Chinese investment in Hollywood, a rise in the number of co-productions and local productions will raise demand for Entertainment insurance in the world’s second largest movie market behind the US, accounting for 8% of movies produced. From 2005 to 2015, China’s film production more than tripled, rising from 260 to 686 movies. On an international scale in 2017, China has invested over $5 billion in Hollywood. Dalian Wanda Group acquired US studio Legendary Pictures in 2016, making it the first Chinese firm to own a Hollywood studio. In the same year, Alibaba announced a partnership with Hollywood’s top grossing director Steven Spielberg to produce, distribute and finance films both in China and globally.
AGCS is the Allianz Group's dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: Marine, Aviation (including Space), Energy, Engineering, Entertainment, Financial Lines (including D&O), Liability, Mid-Corporate and Property insurance (including International Insurance Programmes).
Worldwide, AGCS operates with its own teams in 34 countries and through the Allianz Group network and partners in over 210 countries and territories, employing almost 4,700 people of 70 nationalities.