Allianz Global Corporate & Specialty SE (AGCS) is expanding its Entertainment operations in the growing Asian market with the launch of a new division in Singapore.
Since integrating Allianz’s U.S subsidiary Fireman’s Fund in 2015, AGCS has been moving into new markets beyond North America, with expansions in Singapore, Hong Kong and China.
The Entertainment product line is the latest addition to AGCS’s Asia portfolio, and represents a growing lucrative market, with nearly half the world’s movie production taking place in the continent, and large-scale events and music tours on the rise.
Mark Mitchell, Regional Chief Executive Officer (CEO) of 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 organizing 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.”
AGCS’s Entertainment product line contributed 6% to an overall global premium volume of €7.4 billion in 2017, and the Media and Entertainment sector in Asia is expected to grow by 6% each year, a much higher rate than the global average.
Michael Furtschegger, Head of Entertainment International at AGCS, commented: “We have seen a greater demand for Entertainment coverage from the region in recent years, with the increasing number of live events both locally and across Asia, as well as Chinese investment in Hollywood.
“AGCS will be looking to leverage on our strong reputation as a global player providing first class Entertainment insurance products and services to capitalize on these opportunities and gain a leading market share in Asia in the next three to five years.”
AGCS expects the demand for Entertainment insurance in Singapore to be driven by the live events sector, with larger crowds leading to more complex risks and total live music revenue likely to reach US $61 million in 2021, growing at an annual rate of 3.4%.
Damian Kerin, Head of Entertainment Asia Pacific, who will lead the new Singapore division, commented: “Live events today can resemble movie sets with the amount of props and pyrotechnics utilized, and this is where the expertise we have in insuring films can translate to the live sector.
“Many of these artists, whether as part of their own tour, or as part of a festival, are also going to several locations all around the world, leading to greater risk exposure considerations as they vary from country to country.
“This complements AGCS’ core competency in international insurance programs, where our global office network, risk consulting expertise and large scale capacity differentiates us from our competitors.”
Currently, AGCS covers production and live event risks related to commercials and TV series, and loss of property, damage to props, additional costs, and liability claims related to international productions and cinema blockbusters.
Additionally, the company covers risks like event failure and liability claims for concerts, festivals, tours, and sporting events, and also insures event cancellation against risks like pandemics and terrorism.
