Risk management takes a curtain call.
Learn about entertainment and sports market trends and insurance rate changes for 2023.
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Entertainment & Sports
HUB 2023 Outlook
What's covered...
Setting the Scene
What to Expect in 2023
Make a Plan
About HUB
Profitability
Vitality
Resiliency
Cyber Risk
Take care of employees
Evaluate your security
Meet the Experts
HUB Entertainment & Sports
Setting the Scene
The economy presents challenges, but the industry will continue to perform.
After two years of COVID-19 pandemic losses, the entertainment and sports industries have largely recovered. But inflation and a faltering economy present new risks to profitability.
What to Expect in 2023
Pent-up demand has restored profitability in the entertainment and sports sectors, but inflation could reduce demand for shows and events as costs rise, damaging the bottom line in 2023. Worker shortages, an uptick in cybercrime and violence at venues will continue to challenge the industry. Entertainment companies lacking solid risk management plans will leave themselves exposed.
Make a Plan
Download our 2023 Entertainment & Sports Outlook and Insurance Market Rate Report to see what to expect in the coming year.
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Be Prepared
Evaluate your security.
To counter high rates of worker burnout, entertainment companies need to do more to support employee health, safety and wellbeing. Give workers the ability to personalize their benefits without increasing costs. Start with HUB's Workforce Persona Analysis and get the insights you need to build a competitive advantage.
Assume more risk.
Be transparent with your broker.
Take better care of employees.
Take better care of employees.
Don’t take shortcuts when it comes to training security staff on crowd management, evacuation and de-escalation strategies. Your broker can advise on how to best present your security risk management program to insurance carriers to obtain the best available coverage and rates.
Evaluate your security.
With rising insurance rates, entertainment and sports companies may need to consider new strategies to reduce risk through higher deductibles and increased retentions. Ask your HUB broker about other options such as captive solutions, self-insurance and risk retention groups.
Assume more risk.
Assume more risk.
Be transparent with your broker.
Take better care of employees.
Evaluate your security.
Be transparent with your broker.
Let your broker know what changes you’ve made to the business, so there are no surprises at renewal. Review exposures and insurance needs at least 90 days prior to policy renewal, so your broker can identify the best options.
Take better care of employees.
Evaluate your security.
Be transparent with your broker.
Assume more risk.
Meet the Experts
Practice Leader
Entertainment & Sports Practice
Andrew Forchelli
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Expert
Christian Reed
Entertainment & Sports Practice
Linkedin Profile
Chief Marketing Officer
Susan Mcguirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Shannon Bare
Entertainment & Sports Practice
Linkedin Profile
Entertainment & Sports
When you partner with us, you’re at the center of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB entertainment & sports insurance specialist.
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2. Live Nation, “Live Nation Entertainment Report,” August 4, 2022.
Increasing worker pay and rising costs for gas to transport performers, athletes and equipment will force the industry to adopt money-saving solutions to keep prices affordable in 2023.
After two years of disruption, fewer insurance carriers will write policies in this sector, making coverage more expensive, particularly cyber and umbrella policies, which could jump 40% and 20% respectively.
With the profitability pressure these challenges present, a solid risk management plan is imperative. Entertainment and sports companies need to shine a spotlight on their exposures and ensure they have an insurance strategy to succeed.
Pent-up demand will write the script for financial performance.
An uneven recovery with large venues bouncing back and smaller venues struggling is likely to continue in 2023, putting pressure on overall industry profits.
Box-office movie revenues reached $3.34 billion over the summer of 2022, 19% below 2019’s summer revenues but with only half the number of releases. Industry observers expect 2023 revenues to recover further.
Big events are undoubtedly back: Second quarter 2022 live event operating income reached $319 million, up 86% from the second quarter of 2019, and global quarterly attendance shattered records, with 33 million fans attending 12,500 events.
In sports, NFL attendance is back to pre-pandemic levels, but achieving 2019 attendance rates remains elusive for the NBA and MLB, particularly for underperforming teams.
And small- and medium-sized venues are struggling to attract audiences. With rising inflation reducing discretionary income and increasing ticket prices, the entertainment and sports industry will need to work harder to attract attendees to live events.
1. CNBC, “These charts show how the 2022 box office sizzled, then fizzled,” Sept 3, 2022.
Cyber Risk
Resiliency
Vitality
Profitability
Cyber Risk
Resiliency
Vitality
Profitability
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basic health insurance. For instance, mental health and wellbeing initiatives are important for people working on a music or theater tour, with its high rate of burnout.
Finding benefits that meet the individual needs of employees will differentiate organizations. Personalized benefits, such as offering enhanced mental health benefits for tour workers, help meet individual employee needs and deliver quality employee experiences (QEX) that will help recruiting and retention when entertainment and sports companies are desperate for help.
Step up your benefits game to recruit and retain talent.
Like every other industry, the entertainment and sports sectors are struggling to find workers, making a focus on recruitment and retention paramount.
Nearly three-quarters of entertainment companies report a severe staff shortage, with the dearth of skilled workers most acute (including engineers, technicians and riggers). The scarcity of workers has spawned the creation of a host of apps to fill studio rosters.
Entertainment and sports companies need to approach this shortage with an eye toward improved pay and benefits. Some employers are enticing new workers with signing bonuses, while others offer same day pay to part-time workers.
This sharpened focus on what matters to employees has prompted employers to offer benefits and expand existing offerings beyond
5. PropertyCasualty360, “Live music stages a comeback but new risks challenge the industry,“ August 22, 2022.
Cyber Risk
Resiliency
Vitality
Profitability
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Insurers expect productions and event managers to have up-to-date emergency response plans, covering such dangers as crowd surges and evacuation planning. And underwriters insuring against abuse will require a thorough system for investigating complaints and taking remedial actions.
The industry can’t script risk, but it can protect itself against it.
After significant losses from the COVID-19 pandemic, entertainment and sports companies know fiscal challenges await if they fail to anticipate and manage constant and emerging risks.
The known risks have gotten worse. Active shooter events in the U.S. sharply increased in 2021 and venues, planners and entertainers can find themselves the object of litigation if violent events occur at venues.
General liability insurance rates will rise 5% to 10% in 2023, with fewer carriers offering coverage and underwriters meticulously scrutinizing their policyholders’ security and risk management protocols. Management liability rates are climbing even more, with fewer insurers offering coverage for employment liability or excluding misconduct coverage in excess policies in the wake of the #MeToo movement.
7. Deseret News, “U.S. had sharp increase in active shooter incidents last year, according to FBI report,” May 25, 2022.
Cyber Risk
Resiliency
Vitality
Profitability
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor
Safety measures such as multifactor authentication, firewalls and monitoring services are essential, and training staff on how to identify scams is crucial.
Underwriters will evaluate all cyber security measures and price policies based on the type of information the company will access and retain.
Cyber risk takes center stage.
Cybercrimes have escalated sharply since the pandemic, and the entertainment sector is particularly vulnerable as the business shifts to streaming, digital delivery and ticketing apps. The fast pace of negotiations and digital transactions create further opportunities for bad actors.
The entertainment and sports spaces are recognizing the risk, with the demand for cyber insurance higher than ever. In 2020, nearly half of all entertainment firms had reported at least one cyber incident, with the average time to rectify a data breach extending to more than 220 days.
10. Centripetal, “The Risks of Cyber Attacks in Entertainment and Media,” accessed October 10, 2022.
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HUB entertainment and sports insurance specialists will work with you to develop a tailored strategy that will protect your bottom line, support your workforce and build resiliency for 2023.
Here are some initial considerations:
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Talk to a HUB advisor today.
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Seth Cohen
Entertainment & Sports Practice
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Mona Grabowski
Entertainment & Sports Practice
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Expert
Chris Nixon
Entertainment & Sports Practice
Linkedin Profile
Expert
Entertainment & Sports Practice
Shannon Bare
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Seth Cohen
Expert
Entertainment & Sports Practice
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Mona Grabowski
Expert
Entertainment & Sports Practice
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Chris Nixon
Expert
Entertainment & Sports Practice
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Prioritize your exposures
Assume more risk
Be transparent with your broker
PropertyCasualty360, “Live music stages a comeback but new risks challenge the industry, “August 22, 2022.
3. Sports Business Journal, “NFL attendance up, ending three-year decline,” January 11, 2022.
4. New York Post, “NBA teams hike ticket prices as attendance drops, internal data shows,” May 10, 2022.
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6. Los Angeles Times, “Hollywood has a hiring problem. Can a new crop of apps help?” July 28, 2022.
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8. Insurance Business, “Astroworld tragedy lawsuits, damage claims — huge estimate revealed,” November 29, 2021.
9. Insider Engage, “What are the Big EPLI Trends for 2022,” May 24, 2022.
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Obtaining sufficient insurance to cover those risks will remain challenging. Carriers are raising rates and tightening policy language for event cancellation coverage, with many now excluding a performer’s non-appearance from the policy.
Carriers are raising rates and tightening policy language for event cancellation coverage, with many now excluding a performer’s non-appearance from the policy.
3. Sports Business Journal, “NFL attendance up, ending three-year decline,” January 11, 2022.
4. New York Post, “NBA teams hike ticket prices as attendance drops, internal data shows,” May 10, 2022.
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2
3
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5. PropertyCasualty360, “Live music stages a comeback but new risks challenge the industry,“ August 22, 2022.
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7. Deseret News, “U.S. had sharp increase in active shooter incidents last year, according to FBI report,” May 25, 2022.
8. Insurance Business, “Astroworld tragedy lawsuits, damage claims — huge estimate revealed,” November 29, 2021.
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Pent-up demand has restored profitability in the entertainment and sports sectors, but inflation could reduce demand for shows and events as costs rise, damaging the bottom line in 2023. Worker shortages, an uptick in cybercrime and violence at venues will continue to challenge the industry. Entertainment companies lacking solid risk management plans will leave themselves exposed.
An uneven recovery with large venues bouncing back and smaller venues struggling is likely to continue in 2023, putting pressure on overall industry profits.
Box-office movie revenues reached $3.34 billion over the summer of 2022, 19% below 2019’s summer revenues but with only half the number of releases. Industry observers expect 2023 revenues to recover further.1
Big events are undoubtedly back: Second quarter 2022 live event operating income reached $319 million, up 86% from the second quarter of 2019, and global quarterly attendance shattered records, with 33 million fans attending 12,500 events.2
In sports, NFL attendance is back to pre-pandemic levels,3 but achieving 2019 attendance rates remains elusive for the NBA and MLB, particularly for underperforming teams.4
And small- and medium-sized venues are struggling to attract audiences. With rising inflation reducing discretionary income and increasing ticket prices, the entertainment and sports industry will need to work harder to attract attendees to live events.
2. Live Nation, “Live Nation Entertainment Report,” August 4, 2022.
2. Live Nation, “Live Nation Entertainment Report,” August 4, 2022.
1. CNBC, “These charts show how the 2022 box office sizzled, then fizzled,” Sept 3, 2022.
1
2
3
5. PropertyCasualty360, “Live music stages a comeback but new risks challenge the industry,“ August 22, 2022.
4
5
6
Obtaining sufficient insurance to cover those risks will remain challenging. Carriers are raising rates and tightening policy language for event cancellation coverage, with many now excluding a performer’s non-appearance from the policy.
Insurers expect productions and event managers to have up-to-date emergency response plans, covering such dangers as crowd surges and evacuation planning. And underwriters insuring against abuse will require a thorough system for investigating complaints and taking remedial actions.
Obtaining sufficient insurance to cover those risks will remain challenging. Carriers are raising rates and tightening policy language for event cancellation coverage, with many now excluding a performer’s non-appearance from the policy.
Insurers expect productions and event managers to have up-to-date emergency response plans, covering such dangers as crowd surges and evacuation planning. And underwriters insuring against abuse will require a thorough system for investigating complaints and taking remedial actions.
7. Deseret News, “U.S. had sharp increase in active shooter incidents last year, according to FBI report,” May 25, 2022.
7. Deseret News, “U.S. had sharp increase in active shooter incidents last year, according to FBI report,” May 25, 2022.
7
8
9
70%
of live entertainment companies reported a shortage of skilled workers.
Big events are back, with more than 33 million fans attending 12,500 events globally
Practice Leader
Andrew Forchelli
Entertainment & Sports Practice
Linkedin Profile
Expert
Christian Reed
Entertainment & Sports Practice
Linkedin Profile
Chief Marketing Officer
Susan Mcguirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Shannon Bare
Entertainment & Sports Practice
Linkedin Profile
Expert
Seth Cohen
Entertainment & Sports Practice
Linkedin Profile
Expert
Mona Grabowski
Entertainment & Sports Practice
Linkedin Profile
Expert
Chris Nixon
Entertainment & Sports Practice
Linkedin Profile
Pent-up demand will write the script for financial performance.
Obtaining sufficient insurance to cover those risks will remain challenging. Carriers are raising rates and tightening policy language for event cancellation coverage, with many now excluding a performer’s non-appearance from the policy.
Insurers expect productions and event managers to have up-to-date emergency response plans, covering such dangers as crowd surges and evacuation planning. And underwriters insuring against abuse will require a thorough system for investigating complaints and taking remedial actions.
Practice Leader
Andrew Forchelli
Entertainment & Sports Practice
Linkedin Profile
Practice Leader
Andrew Forchelli
Entertainment & Sports Practice
Linkedin Profile
Expert
Christian Reed
Entertainment & Sports Practice
Linkedin Profile
Chief Marketing Officer
Susan Mcguirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Shannon Bare
Entertainment & Sports Practice
Linkedin Profile
Expert
Seth Cohen
Entertainment & Sports Practice
Linkedin Profile
Expert
Mona Grabowski
Entertainment & Sports Practice
Linkedin Profile
Expert
Chris Nixon
Entertainment & Sports Practice
Linkedin Profile
Practice Leader
Andrew Forchelli
Entertainment & Sports Practice
Linkedin Profile
Expert
Christian Reed
Entertainment & Sports Practice
Linkedin Profile
Chief Marketing Officer
Susan Mcguirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Shannon Bare
Entertainment & Sports Practice
Linkedin Profile
Expert
Seth Cohen
Entertainment & Sports Practice
Linkedin Profile
Expert
Mona Grabowski
Entertainment & Sports Practice
Linkedin Profile
Expert
Chris Nixon
Entertainment & Sports Practice
Linkedin Profile
Practice Leader
Andrew Forchelli
Entertainment & Sports Practice
Linkedin Profile
Expert
Christian Reed
Entertainment & Sports Practice
Linkedin Profile
Chief Marketing Officer
Susan Mcguirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Shannon Bare
Entertainment & Sports Practice
Linkedin Profile
Expert
Seth Cohen
Entertainment & Sports Practice
Linkedin Profile
Expert
Mona Grabowski
Entertainment & Sports Practice
Linkedin Profile
Expert
Chris Nixon
Entertainment & Sports Practice
Linkedin Profile
Christian Reed
Expert
Entertainment & Sports Practice
Linkedin Profile
Susan Mcguirl
Chief Marketing Officer
Entertainment & Sports Practice
Linkedin Profile
Win Williams
Risk Advisor
Entertainment & Sports Practice
Linkedin Profile
Expert
Entertainment & Sports Practice
Shannon Bare
Linkedin Profile
Seth Cohen
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Susan Mcguirl
Chief Marketing Officer
Entertainment & Sports Practice
Linkedin Profile
Win Williams
Risk Advisor
Entertainment & Sports Practice
Linkedin Profile
Expert
Entertainment & Sports Practice
Shannon Bare
Linkedin Profile
Seth Cohen
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Win Williams
Risk Advisor
Entertainment & Sports Practice
Linkedin Profile
Expert
Entertainment & Sports Practice
Shannon Bare
Linkedin Profile
Seth Cohen
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Expert
Entertainment & Sports Practice
Shannon Bare
Linkedin Profile
Seth Cohen
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Seth Cohen
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
Mona Grabowski
Expert
Entertainment & Sports Practice
Linkedin Profile
Chris Nixon
Expert
Entertainment & Sports Practice
Linkedin Profile
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But cyber insurance rates could climb 40% or higher in 2023, following the same trajectory in the two previous years. Industry players need to prove to carriers they are a best-in-class risk.
Safety measures such as multifactor authentication, firewalls and monitoring services are essential, and training staff on how to identify scams is crucial.
Cybercrimes have escalated sharply since the pandemic, and the entertainment sector is particularly vulnerable as the business shifts to streaming, digital delivery and ticketing apps. The fast pace of negotiations and digital transactions create further opportunities for bad actors.
The entertainment and sports spaces are recognizing the risk, with the demand for cyber insurance higher than ever. In 2020, nearly half of all entertainment firms had reported at least one cyber incident, with the average time to rectify a data breach extending to more than 220 days.
But cyber insurance rates could climb 40% or higher in 2023, following the same trajectory in the two previous years. Industry players need to prove to carriers they are a best-in-class risk.
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