In recent years, Hollywood has increasingly leaned on familiar stories and characters, with sequels, remakes, and spin-offs dominating the scene. From Disney’s live-action retellings to Marvel’s ever-expanding universe and multiple Game of Thrones follow-ups, audiences are seeing more of what they know instead of new ideas. This trend isn’t just about a lack of creativity; it’s also a way to reduce risks in a tough business environment still dealing with the fallout from the pandemic, strikes, and unpredictable box office results.
Peter Burt, president of entertainment at Intact Insurance Specialty Solutions, explains that after COVID-19, studios became much more cautious. “Studios started focusing on reliable projects and using known intellectual property to minimize surprises,” he says. Franchises feel almost like renewal contracts for insurers since they involve repeat production teams and ongoing series, making risk assessments smoother.
When insurance teams see a proven track record—like several seasons of a TV show without any claims—they’re more comfortable backing the next installment. That history helps brokers and insurers predict risk better compared to brand-new projects. However, this approach isn’t risk-free. Big franchises often come with bigger budgets. For example, “Dune: Part Two” has major stars like Timothée Chalamet and Zendaya, making cast insurance more critical. If a key actor can’t work due to illness or injury, productions can lose hundreds of thousands of dollars a day.
As budgets soar from tens to hundreds of millions, insurers usually won’t cover the full amount alone. Instead, they create multi-carrier setups to spread the risk, often topping out at around $150 million per carrier. So far, no single cast insurance claim has exceeded $100 million, offering some reassurance. But rising costs are pushing insurers into new territory.
The type of movie also matters. Low-budget horror films, like the recent “Iron Lung” that cost $3 million but earned $21 million opening weekend, tend to be safer bets. Romance films also perform steadily over time. On the flip side, sci-fi movies are pricey and depend heavily on visual effects, and the days when just attaching a big star guaranteed huge profits seem to be fading. Instead, insurers now look closely at the production team’s past work and how risks are managed.
Overall, Hollywood’s focus on sequels is a cautious move in a world full of uncertainties. But Peter Burt warns that growing budgets, unpredictable weather, international shoots, and new tech still bring challenges. “Everyone wants the creative vision, but we have to keep things safe and controlled,” he says. Studios and insurers alike are trying to balance dreams with practical risks as the industry moves forward.