As the world has emerged from the pandemic, the entertainment industry has surged, with event and live performance venue attendance at pre-COVID-19 levels. Despite this resurgence, the insurance market continues to be challenging from a rate and underwriting perspective. Limited markets and capacity have led to a market dynamic that hasn’t improved as we anticipated a year ago. The new capacity we mentioned in Q1-2023 has struggled to gain traction.
The Writers Guild of America (WGA) and Screen Actors Guild (SAG-AFTRA) strikes led to the universal stoppage of most film and TV productions. With the end of both the WGA strike on September 27 and the actors’ strike on November 9, Risk Strategies foresees an extremely active 2024.
Advertising and commercial production activity continues its robust emergence from the pandemic. Even in the face of a continued firm insurance market, there’s been a noticeable increase in the number of productions over the last 18-24 months. The WGA/SAG-AFTRA strikes that affected TV and film did not impact advertising and commercials, which assisted the continued activity in this sector. We do not foresee a meaningful slowdown in production activity in 2024.
At this point, we do not anticipate appreciable rate or coverage changes in the next six months.