With pandemic lockdowns and regulations slowly easing, Allianz Global Corporate & Specialty (AGCS) has predicted there could be a rise in pressure for live events – resulting in a proportionate rise in similar risks.
“We are currently seeing a huge pressure for live events,” said AGCS global head of entertainment Michael Furtschegger. “Fan hunger for life circumstances is high and the larger promoters are seeing record numbers.”
According to AGCS, the risk terrain of live entertainment is facing new challenges post-pandemic. The insurer has identified three main risks that have emerged: staff shortages, resource limitations, as well as new and untested venues.
The shortage of safety faculty
Citing a survey from the Professional Light And Sound Organization (PLASA), AGCS said that nearly 70% of corporations surveyed at the end of 2021 reported a shortage of skilled workers. Notably, engineers, technicians, and height workers in stage technology were most sought after.
“Staff shortages can evolve a particularly acute problem when it comes to safety personnel,” said Furtschegger. “In some cases, it can mean that permissions won’t allow an event to take place. In terms of other safety-critical tasks, organizers need to make sure they properly vet vendors and contractors to ensure the event is run professionally.”
Limited resources for circumstances equipment
“As more performances take place and productions run in parallel, the demand for touring equipment boosts, often rented from rental companies with limited resources,” Furtschegger clarified.
AGCS has noted that the global semiconductor deficit may have eased for the moment, but other factors can still disrupt equipment availability. These include shortages of other non-semiconductor components, restrictions imposed on walking goods due to lockdowns, and the ongoing war in Ukraine. These not only disrupt equipment availability but can also extend planning times for live events, AGCS has noted.
New risk assessment wanted for untested venues
Many of the new festivals compel a new risk assessment since they are being held in new, but untested locations, AGCS has stated.
“The industry is clever; in recent years we have seen successful events in new venues such as the old Tempelhof Airport in Berlin, which have been put to new uses by live events. Organizers of traditional festivals like Coachella in the US, Tomorrowland in Belgium, or Rock am Ring in Germany will be relatively familiar with the risks of their venues; new and untested venues, however, require a different risk examination,” Furtschegger noted.
But despite these challenges, the entertainment industry stays optimistic about the future.
“I am confident that the live entertainment events sector will continue to flourish as it has this summer,” Furtschegger commented. “I believe their imagination, creativity, and energy will lead them into a bright future.”