The Shifting Landscape of Film Production
The film industry is facing a new era of challenges as climate-related risks become increasingly unpredictable. Producers are now forced to rethink their approach to location filming, balancing the financial benefits of film tax credit incentives against the growing threat of natural catastrophes. “Catastrophic risk is being discussed across the country,” said Peter Burt, president of entertainment at Intact Insurance Specialty Solutions. “For example, Miami has strong film tax incentives, but it’s historically a tough area because of hurricanes. Underwriters have to ask: Is it the right time of year? What’s the contingency plan?”
Traditionally, film productions have been drawn to iconic locations like Los Angeles and Florida’s scenic coasts. However, as climate patterns shift and disasters become more frequent, these areas are becoming riskier. Producers must now be strategic about location choices, considering both the potential for disruption due to extreme weather and the availability of tax credits. States like New Mexico, Georgia, and New Jersey, which offer substantial tax credits and have a lower catastrophe profile, have seen an increase in production activity. Internationally, countries like Ireland and the UK, with tax incentives of up to 40%, are gaining traction.
The insurance industry is playing an increasingly central role in determining how and where productions are greenlit. Underwriters are carefully evaluating filming locations, taking into account seasonal disaster risks and historical exposure patterns. While some productions are becoming more proactive about safety planning, especially when shooting in high-risk areas, the decision on where to film often comes down to finances – specifically, where the best tax credits are available.
When productions choose to film in high-risk zones, insurance carriers are adapting their underwriting strategies. This includes higher deductibles, specific sub-limits for catastrophe exposures, and more rigorous contingency planning requirements. Carriers are also avoiding peak disaster seasons when insuring time-sensitive shoots in vulnerable areas.
Technology is helping production companies mitigate catastrophe risks. There’s a growing trend towards using sound stages and controlled indoor environments. “We recently had a film shot almost entirely on a soundstage in Las Vegas,” Burt revealed. “With CGI and other tech, you can now make a set look like it’s in Cabo or Paris, even if it’s just a stage in Los Angeles. That makes for a safer, more controllable environment.”
Artificial intelligence (AI) and digital production tools are also enabling teams to simulate complex environments without filming outdoors, minimizing exposure to weather-related risks and streamlining production costs. AI is being explored for post-production editing, scene reconstruction, and crowd generation, making filming faster and less dependent on large-scale physical setups.
As the industry navigates these changes, producers, insurers, and policymakers must work together to create a more resilient and adaptable film production ecosystem. The future of filmmaking depends on striking a balance between financial incentives, risk management, and creative vision.
