The City of Cape Town, a metropolis for local and foreign
film makers, estimates that film and television production has added R5 billion
and 35,000 new jobs to the province over the three years ending 2014. There is
broad consensus the industry could grow phenomenally over the next few years.
The Deloitte baseline study conducted in 2012 shows that the Industry delivered
an economic multiplier of 2.89 i.e. for every Rand spent another R1.89 was
generated within the economy.
“Film audiences who find themselves lost in the magic of the
finished product with little idea of the blood, sweat and tears that goes into
creating a 30-minute documentary, let alone a two-hour-long feature film. Aside
from finalising the script, auditioning and contracting with actors and
securing locations, the average production team must secure enough financing to
deliver a finished product. Insurers provide invaluable assistance in getting
the job done,” says Paul Raleigh, head of Hollard Film Guarantors, a specialist
underwriter focused on the entertainment sector.
International film Producers are flocking to South Africa to
take advantage of ideal filming locations, breath-taking scenery, world-class
film crews and the favourable exchange rate, among other pluses. As more crews
arrive to shoot commercials, television shows and feature films they create an
environment that encourages local talent to get in on the act.
Government departments such as Home Affairs and the
Department of Trade and Industry (DTI) are making it easier for foreign
investors to make movies in South Africa. Home Affairs has relaxed certain of
its visa requirements to assist production houses in securing the necessary
paperwork for foreign staff while the DTI has offered a range of rebates and
incentives to foreign productions shot on location in South Africa, films that
are also post-produced locally and local filmmakers alike.
However, there needs to be a public/private partnership that
will help alleviate some of the administration and financial challenges faced
by the department. Hollard is working with the government to assist in
restoring confidence in what was a world class administration.
There is broad consensus the local film industry can grow
exponentially over the next few years. In 2013 it produced 25 films for theatre
release, generating 11% of the industry-wide box office take, or R98m of R879m.
In the six months to end-June 2014 a dozen local films accounted for R33m of
the R382m box office gross for the period.
“Hollard has a deep passion and understanding of the
creative economy. This passion started with our founders and the belief that
art, in all its wonderful and varied forms, is a meaningful avenue for positive
and enduring change in society,” explains Heidi Brauer, Chief Marketing Officer
at Hollard. “Our involvement in this sector extends beyond sponsorship and CSI
initiatives. We are in the business of insuring the creative sector and have
specialist expertise.”
Hollard Film Guarantors is a division that insures movie
investors against non-delivery of South African feature films or co-productions
with international production houses. It makes sure that films, television
series and documentaries are completed and delivered on time and within budget,
without calling on the investors to provide additional funding. In addition,
Hollard assists producers in managing their cashflows against secured funding.
This is what sets them apart from their competitors.
“In the worst case, Film Guarantors will provide finishing
funding in the event the film runs into budget problems, but for the most part
the outfit’s ‘prevention-is-better-than-cure’ approach ensures that potential
problems are swiftly remedied. The production process, from script to screen,
is managed to reduce both the chance and quantum of claims,” says Raleigh.
This insurance differs significantly from typical customer
insurance in that it protects investors against process risks rather than loss
due to accident or damage. Cover for sets, props, wardrobe, equipment, illness
of nominated crew or cast is covered under the producer’s indemnity insurance
which must be taken out with an insurer that specialises in this type of
business.
Hollard has been a main sponsor of the Jozi Film Festival
for more than three years. The insurer is also the headline sponsor of the
Annual Business Day BASA awards, which celebrates the partnership between
Business and the Arts, awarding companies that have made the biggest
contribution towards the development of the South African art environment.
The Film Guarantee division sponsors the Production Merit
Award and the Durban International Film Festival.
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