As climate change brings more unpredictable weather, the film industry is facing tough decisions about where to shoot. From wildfires in California to hurricanes in Florida, production companies are rethinking their filming locations. They must balance the risks of natural disasters with the financial perks of film tax credits.
Peter Burt, president of entertainment at Intact Insurance Specialty Solutions, highlighted the issues surrounding these decisions. He pointed out that while Miami offers strong tax incentives for filming, it also has a history of hurricane activity. This raises questions for underwriters about timing and contingency plans.
Traditionally, filmmakers have flocked to iconic spots like Los Angeles and Florida’s coasts. But as climate patterns shift and the frequency of disasters increases, these locations are becoming riskier. Producers now have to be strategic, not just about potential weather disruptions, but also about maximizing tax incentives.
Tax credits are financial incentives from governments aimed at attracting film and television productions. These credits can significantly lower production costs, making certain locations more appealing. States like New Mexico, Georgia, and New Jersey have seen a surge in productions due to their generous tax credits and lower risks of natural disasters. Meanwhile, California, once the heart of the film industry, is losing productions because of heightened wildfire risks and less competitive tax incentives.
Burt noted that California has fewer tax credits than other states and countries, making it less attractive for filming. The recent wildfires in Los Angeles had minimal impact on productions since they occurred during a low filming period. However, they did prompt insurance companies to scrutinize risk mitigation strategies more closely.
While the fires did not lead to a significant number of claims, they caused disruptions in talent availability and crew logistics, which can lead to increased costs and delays. Many industry professionals living in affected areas also faced personal challenges.
Insurance companies are now more influential in deciding where films get made. Underwriters are carefully evaluating filming locations, considering seasonal disaster risks and historical exposure patterns. Despite this, production companies are not completely avoiding high-risk areas.
Burt pointed out that companies are becoming more proactive about safety planning, especially in areas prone to disasters. Insurance carriers are adapting their strategies by implementing higher deductibles and stricter requirements for contingency plans when filming in these zones.
To reduce reliance on unpredictable outdoor environments, filmmakers are increasingly turning to technology. Many productions are now using sound stages and controlled indoor settings. Burt mentioned a recent film shot almost entirely on a soundstage in Las Vegas, where technology like CGI allows filmmakers to create the illusion of different locations.
AI and digital tools are also helping production teams simulate environments without needing to film outside. This not only reduces exposure to weather risks but can also streamline costs. However, the industry is still figuring out how to ethically incorporate AI, especially after recent labor strikes focusing on AI’s role in creative work.
As the film industry adapts to these challenges, it is clear that the interplay between climate risk, insurance, and technology will shape the future of filmmaking.