Mumbai: The film insurance business is gathering momentum in the country and may soon become a good revenue stream for insurance players, industry officials said.
The demand for risk cover against unanticipated incidents has led film producers to opt for mechanisms that provide protection to their investments, the officials said.
The entry of corporate giants into film making has not only altered the dynamics but also catalyzed the growth of the film insurance business, the officials said.
“Films fall into the broad category of event management and hence like any other event it can also be insured,” K N Bhandari, honorary director, Centre of Insurance Studies and Research, National Law University, Jodhpur, told PTI here.
Attributing the growth of the business to an increasing number of corporate entities like Adlabs, Sony Pictures and UTV, amongst others, entering the realm of film-making, Bhandari said “these corporates prefer to be insured against any unforeseen or unfortunate incidents and this is becoming a big driver of growth.”
Another fall-out of this growth is that as the film insurance business picks up steam in the next few years, so would institutional financing of film making.
“As film insurance gains in popularity, it will also encourage and promote institutional financing of film making,” Bhandari said.