2026 MARKET TRENDS

Entertainment

Key Takeaways

While the insurance market has stabilized to some degree, it’s still challenging for many entertainment ventures
Extreme weather, labor strikes, political unrest and other factors are increasing exposure for cancellations and postponements
Record-breaking budgets for film and TV, combined with inflation and expensive technology, are making claims more costly to resolve

Carriers are maintaining a disciplined approach, looking carefully at each organization’s loss history and risk mitigation strategy.

Overview

Following the pandemic, rates hardened for entertainment risks. Though conditions have begun to level out and even soften slightly, this stabilization does not signal a return to a truly soft market.

Instead, carriers are maintaining a disciplined approach, looking carefully at each organization’s loss history and risk mitigation strategy. In some cases, underwriters are showing a renewed willingness to relax pandemic-era restrictions by expanding some coverages and increasing sublimits. However, the cost environment remains difficult for many in the industry.

Market Conditions

Entertainment projects today are more expensive than ever, driven by record-breaking budgets for film and TV, costly special effects technology and high-value sets.

The industry represents a significant portion of U.S. GDP yet relies on a surprisingly small pool of carriers, creating capacity constraints. There are approximately 10 carriers operating in this space, and for certain specialized sub-sectors, that number can drop to as few as two or three. This concentration of risk means that while rates are stabilizing, competition is limited and carriers remain highly sensitive to exposure.

Securing comprehensive coverage can be a challenge. Success in this market depends on early preparation, detailed underwriting data and a strong risk management strategy.

Several drivers are influencing the current market:

Disruptions:

From extreme weather and wildfires to labor strikes, equipment failures and global political polarization, unpredictable events are driving claims and fueling underwriting caution, particularly for location-based productions and live events

Economic and social inflation:

Rising repair and claim costs, driven by Rising prices, along with increased litigation and large jury awards, remain a pressure point, inflating the value of claims

High-profile incidents:

Accidents involving stunts, pyrotechnics, drones and crowd management are leading to heightened carrier scrutiny of live events and sets

Industry consolidation:

Mergers and acquisitions (M&A) are reshaping the insurance market, reducing the number of independent players

Labor-related concerns:

Union strikes and labor disputes pose business interruption risks, influencing how underwriters assess production stability

Cost of capital:

Broader economic factors are affecting carrier profitability and their appetite for risk

Increased cyber risk:

The growing use of digital technology has expanded vulnerabilities to cyber threats ranging from ransomware attacks to intellectual property violations involving deepfakes

A shortage of specialized talent:

Fueled by retirements and a lack of new entrants, staffing shortages can lead to loss of institutional knowledge, accidents and reduced innovation

Rate Outlook

* Dependent on risk type, geographic location, proximity to extreme weather and coverage options

Impacts & Considerations

Unless a carrier severely cuts rates to grab market share, causing a knock-on effect for the rest of the market, or there is an increase in carrier participation and overall capacity, Brown & Brown anticipates current conditions will continue over the next six to twelve months. Steps to help negotiate include the following:

Seek input from an entertainment insurance specialist

Some insurance products are not available through generalist brokers. Organizations want a specialist who understands entertainment risks and can assess coverage needs against the limited market capacity.

Initiate renewals early

Start the renewal process 120 days or more before the policy expiration date. This allows time to negotiate terms, answer underwriter questions and find necessary capacity in a constrained marketplace.

Prepare detailed, granular underwriting information

Clearly demonstrate risk management protocols. A well-documented submission that highlights your safety and loss control measures can make the difference between a declination and a competitive quote.

Address the full risk spectrum

Be prepared to discuss both existing and emerging risks. From traditional hazards like equipment failure and weather interruptions to modern threats like cyberattacks and AI-driven liabilities, showing a comprehensive grasp of your risk profile helps instill confidence in carriers.

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Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.