Entertainment Insurance Market Expected to Reach $8 Billion by 2031

According to a new report published by Allied Market Research, titled, “Entertainment Insurance Market," The entertainment insurance market size was valued at $3.1 billion in 2021, and is estimated to reach $8 billion by 2031, growing at a CAGR of 10.1% from 2022 to 2031.

Having an insurance coverage is one of the most powerful tool businesses have to mitigate risks at any events they hold. Since, the entertainment business is all about events, an entertainment insurance policy mitigates the financial risk incurred by holding these events. Purchasing the insurance coverage ensures businesses are protected against liability and damage to expensive equipment. Furthermore, this type of coverage covers accidents involving a third-party, such as a member of the public. For instance, if someone slips and sustains bodily damage in the crowd at a gig, they have a right to sue for medical expenses, damaged property and additional damages. Therefore, a general liability policy under the entertainment insurance covers the litigation costs.

Furthermore, market players are undertaking various strategies to further enhance the entertainment insurance market. For instance, Integro Insurance Brokers Holdings Ltd announced its acquisition of London-based Entertainment Insurance Partners Limited (“EIP”), parent company of Robertson Taylor Insurance Brokers Ltd.  EIP, an insurance broker specializing in entertainment and sports, has offices in London, New York, Los Angeles, Atlanta and Nashville. Furthermore, the strategy is to continue expanding their global entertainment and sport insurance, employing the skills of both the combined businesses to add new products and services for clients in all geographies. Therefore, these strategies is expected to provide major lucrative opportunities for the entertainment insurance market growth in the upcoming years.

On the basis of coverage, the liability coverage segment is the highest growing segment. This is attributed to the fact that liability insurance is helpful for the entertainment industry as large number of people are involved in shows, concerts, shooting of a movie and others. In case of an accident, if anyone is injured, then the liability insurance takes care of the legal aspect as well as provide compensation to the injured. The policyholder does not have to give money out of their pocket since they are insured under the liability insurance.

Based on region, North America attained the highest growth in 2021. This is attributed to the fact that entertainment equipment insurance brokers are largely adopted by entertainment corporations, professional film makes, and acting institutions across the U.S., which has become a major trend in the market. Moreover, insurance programs are conducted by insurers to meet the needs of entertainment business segments with unique risk profiles, and the market has experienced rapid increase in demand for both comprehensive & custom designed entertainment insurance. This, as a result, is accelerating the market growth in this region.    

The COVID-19 pandemic negatively impacted the entertainment industry which had a simultaneous impact on the entertainment insurance industry since there was no activity carried on during the pandemic and all the production houses were closed due to the lockdown, due to which the demand for entertainment insurance market trends drastically reduced.   

Key findings of the study

• By insurance type, the production insurance segment led the entertainment insurance market in terms of revenue in 2021.
• By distribution channel, the brokers segment accounted for the highest entertainment insurance market share in 2021.
• By end user, the business segment accounted for the highest entertainment insurance market share in 2021
• By region, North America generated the highest revenue in 2021.

The key players profiled in the entertainment insurance market analysis are Allianz, Allen Financial Insurance Group, Arthur J. Gallagher & Co., AXA SA, Chubb, Everest Re Group, Ltd., Hub International Limited, Higginbotham, Insurance Canopy, Marsh LLC, MFE INSURANCE BROKER, Next Insurance, Inc., Ryan Specialty Group, LLC, The Hartford, Zensurance, Markel Corporation, and Truman Van Dyke. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.