The pandemic. A devastatingly long writers strike. A shifting delivery model for television and film. An unsettled economic, regulatory and weather environment.
The headwinds buffeting the entertainment industry since 2020 are not letting up in 2026. Effective risk management has never been more critical. And brokers with a deep understanding of the nuances of the business and its risks, not to mention insurance implications, will have a leading role to play.
Here's how the outlook for entertainment is shaping up.
There's growth ahead but financial strain, too.
Over the long term, the U.S. live events market is surging. By 2032, it's projected to achieve a 4.9% CAGR reaching $651.53 billion by 2032. No surprise: Audiences are clamoring to get away from their digital isolation to enjoy the shared experience of a music concert, a community fair or a sports event.
As a result, revenues for live events are surging, despite "funflation" that has sent ticket prices soaring — by 34% over 2019 levels. Revenue gains are being especially boosted as producers seize opportunities to raise the entertainment bar with digital overlays. With augmented reality, for example, virtual special effects are layered onto live performances, enhancing the experience.
For all the demand, though, the industry faces distinct pressures, starting with rising costs. A live production takes a lot including staging, labor, vendors and more. Important considerations include community support such as fire/police and safety management.
Another pressure is the distinct upward trend in weather-related disruptions; more than 40 festivals in North America were canceled even before the 2025 summer season kicked off. Compounding the costs is the impact on insurance premiums for cancellation and catastrophe coverage. Smart brokers will step up advise sharpened protocols for such risks as capacity will be tight.
In fact, insurance costs overall will be another pressure on profitability. Even more concerning is the serious labor shortage that is sapping the vitality of the business
The struggle to fill essential jobs in entertainment
Labor is a big concern in a fractured entertainment market. On one hand, technology (think artificial intelligence) and industry consolidation led to an 18% increase in media/entertainment layoffs in 2025's first eleven months. Event producers, though, are struggling for skilled workers; 89% of event professionals said the shortage was having a direct effect on their events.
It's driven up wages for event crews, another cost pressure to manage. It also undermines confidence in producers' ability to execute on contracts and to pull off large-scale productions. Further, the shortage of skilled hands with institutional knowledge has caused workers' compensation claims to rise. And finally, new talent pipelines are constricted by limited career pathways, scarce mentoring opportunities and fewer entry-level roles.
There's no simple solution, but ensuring a benefits strategy that is both comprehensive and personalized to the individual employee's circumstances has a big role in recruitment and retention success.
Given the nature of industry work — long hours, stress, extended travel, erratic schedules and inconsistent pay — a wellness emphasis with an emphasis on mental health is crucial. Brokers with the right expertise, tools and resources will be important for shaping benefits strategies and well-being programs and risk management practices that support retention and enhance safety and performance, too.
Converging risks test resiliency
The industry is increasingly challenged to manage converging risks such as climate disruptions, performer liability, safety concerns and insurance hurdles. To succeed, players must improve their ability to anticipate, adapt and recover fast from risks.
It's a time when insurers are closely scrutinizing contracts, risk transfer provisions and safety preparations before coverage is offered. Brokers that can help industry clients position themselves with a good record of risk preparedness and management will be in high demand.
In 2026, underwriters will focus on public and premises liability, violence and concentration of attendees for general liability coverage, which could rise by as much as 15%. Umbrella and excess liability will also be pressured; commercial automotive, general liability and liquor liability could drive premiums up 20%.
Weather-related losses remain a major concern, but cancellation coverage should be stable, depending on weather and geographic variables along with coverage terms and options. Catastrophe premiums may be higher, but variables apply here, too. Entire counties are being excluded due to elevated wildfire risk scores, making capacity scarce.
One good bet for managing through the uncertainty is prioritization of enterprise risk management, leading to a strong culture of safety, security and training as well as advanced risk maturity. This will help create a clear, data-driven story of a best-in-class risk well positioned to secure the coverage needed to thrive in a tumultuous year.
Sue McGuirl is the Chief Marketing Officer and Sports & Entertainment Practice Lead at leading global insurance brokerage HUB International.
Opinions expressed here are the author's own.
This article is published with permission from HUB International and may not be reproduced.
(Featured image credit: Gennadiy Poznyakov_Adobe Stock)
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