Johannesburg, South Africa//- When the winners of the world’s most coveted film awards are revealed at the 94th Academy Awards on Sunday, Allianz Global Corporate & Specialty (AGCS) will be eagerly watching events unfold at the Dolby Theatre, where the trophies will be bestowed.
This year, the Allianz Group’s industrial insurer is covering five of a total of 10 nominations in the “Best Picture” category.
In total, film productions that have received insurance cover from AGCS have racked up 31 Oscar nominations this year.
AGCS has helped shape Hollywood history in its 100 years of insuring film productions, providing insurance coverage for numerous productions, from silent slapstick comedies like the Keystone Cops to the visual wizardry of the Harry Potter and Marvel films. In addition, AGCS has insured every James Bond film to date, including “No Time To Die”, which is nominated for three Oscars this year. AGCS also insured the Iowa cornfields in “Field of Dreams” and the Louvre treasures in “The Da Vinci Code.”
Michael Furtschegger, Global Head of Entertainment at AGCS, says: “AGCS’ connection to the film industry goes back to the 1900s to the films of Charlie Chaplin. Since then, we’ve worked with filmmakers to adapt to change.
Visual effects, more elaborate stunts, more exposed locations are now an important part of the cinematic experience and require specialized underwriting and risk assessment expertise, which AGCS, as a market leader, offers to clients.”
But AGCS, which generates 5% of its global premium income of 9.5 billion euros (2021) through entertainment solutions, sees itself as more than just the insurer of choice for blockbuster movies. “We have also insured thousands of arthouse and independent films, television shows and documentaries, as well as commercials, photography and post-production,” explains Furtschegger. “We will be rooting for our entertainment clients as the magic envelopes are opened on Oscar night.”
While last year’s Oscars were celebrated on a much smaller and more intimate scale at the historic Union Station building in Los Angeles due to the Covid-19 pandemic, this year the Academy returns to the spotlight at the Dolby Theatre. In 2021, worldwide box office receipts were $21.4 billion.
That’s up 78% from 2020, but still less than half the $41.3 billion average in the three pre-pandemic years from 2017 to 2019, and the industry is not expected to return to pre-pandemic levels until 2023 at the earliest.
Another consequence of the pandemic was that movie theaters around the world closed. New technologies and the growth of streaming services have since changed the way movies are seen. As a result, five of the 10 films nominated for Best Picture were streaming-only or hybrid releases (for streaming and theatrical release on the same day). Only five productions were theatrical-only releases.
“Largely due to the rise of streaming portals, film productions have multiplied, which implies great growth opportunities for entertainment insurers,” says Michael Furtschegger.
Depending on a film’s genre, its insured budget, deductibles and other risk factors, insurance premiums for a film production can range from 0.7% to 1.5% of the total budget.
Based on industry estimates, the largest film insurance market is Hollywood with approximately $400-500 million of annual insurance premiums, followed by productions from the United Kingdom with approximately $60-70 million.
China is growing at $45 million, as are France and Germany, each with about $25-30 million total market premium.
With 12 nominations, the film “The Power of the Dog” is this year’s Oscar favorite, while the science fiction epic “Dune” received 10 nominations.
Films such as “West Side Story,” “King Richard,” “Belfast” and “Coda” also have various chances of winning. The details of which productions are specificially insured by AGCS remains confidential.
African Eye Report
