- Cyber incidents and natural catastrophes are new emerging risks for the sector
- Political risks and violence are increasingly becoming a concern for the industry
- Embracing of new technologies led to the drop in risks emanating from artificial intelligence and nanotechnology
The Allianz Risk Barometer 2018 reveals that cyber incidents are a top concern for the entertainment industry with 33% of 39 respondents pointing to the worrisome risk. Natural catastrophes with the same 33% of responses occupy the #2 spot since 2017. Political risks and political violence are at #3 with a 31% response. Business interruptions are a new risk in the sector at 28%. The report is published annually by Allianz Global Corporate & Specialty (AGCS).
South African entertainment producers are adjusting their models in line with the shifting consumer preferences. User experience has become a key competitive advantage as businesses in the sector seek to harness technology and data in order to engage and retain users. This reliance on technologically advanced platforms such as live streams, pay per view and on-demand services presents the sector with cyber risks. IT failure, data breaches are the biggest risk in the sector as participants in the sector are now relying on technology to deliver entertainment content.
The entertainment industry, the world over is synonymous with innovation and creativity. Participants in the sector have embraced new technologies and distribution models as they set a high standard for business excellence. This translated into the reduction of risks emanating from new technologies as indicated in the Allianz Risk Barometer 2018.
While planning for an event, it is important to have a crisis plan and consider what may go wrong. This will ensure that Insurers, risk managers, venue operators, production managers, security personnel and other stakeholders engage in dialog and have a plan in place well before the event commences in order to put on a safe live performance. Education, communication, commitment to safety, knowledge, skill and expertise are hallmarks of a good safety plan.
Event intelligence is another way of being well prepared for any event. Table top planning exercises consider details such as: What emergencies are reasonably foreseeable? What will an event’s audience be like? How will crowd behavior change from event to event in the same venue? Once the possibilities have been considered, which are most and least likely to occur? Considerations like these help coordinators pre-plan and decide on action steps.
“Entertainment insurance typically covers property and casualty risks to productions and live events. It can include physical risks for cast, crew, wardrobe, sets and equipment; and coverage for extra expenses associated with a production delay caused by those physical risks. Liability also represents a key entertainment cover: for instance at events where an organizer will need cover for injuries to performers and audience members” said Senzi Ndlozi Business Development Manager at AGCS Africa.
AGCS is well placed to use its international network to support clients operating in multiple locations, or filming outside the traditional Hollywood filming locations - including South Africa.
“Specialized entertainment policies and knowledgeable underwriters provide superior coverage and service. We continually innovate incorporating insights from our clients and brokers to respond to the evolving risks facing the Entertainment industry,” concludes Senzi.
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About Allianz Global Corporate & Specialty
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. AGCS provides insurance solutions to more than three quarters of the Fortune Global 500 companies, writing a total of €7.4 billion gross premium worldwide in 2017.
AGCS SE is rated AA by Standard & Poor’s and A+ by A.M. Best.