Talk the talk

David Jermyn, director of insurance broker Arachas and entertainment insurance specialist, talks to David Clerkin.

What does the entertainment insurance market involve?

Entertainment insurance is a niche market in the insurance industry, so not all brokers would operate in this area. Basically, it encompasses all risk factors associated with an entertainment event.

What are the key risks relating to an entertainment event? What do insurers have to worry about?

Cancellation of an event and non-appearance of performers or abandonment are the main risk factors. Liabilities to the public attending the event and liability for persons working at the event would also be insured.

What events have you arranged cover for?

The great thing about this market is that it has no geographical boundaries. We have been in a position to provide cover for a number of major worldwide acts. We’ve insured events such as a Rolling Stones concert in Hong Kong, in addition to those featuring all the biggest names in Irish entertainment.

How much of the price of a concert ticket goes on insurance?

The promoter obviously factors in insurance costs when deciding ticket prices but, as you can imagine, this risk factor varies between artists.

Some promoters claim high insurance costs are a reason for high ticket prices. Are they being disingenuous?

We’re not in a position to comment on the decisions of the promoter when it comes to pricing.

Please tell us about Arachas. Where did it come from?

Arachas was established in 2004 and is the largest independently-owned Irish insurance brokerage. We employ 100 people between our offices in Cork, Dublin and Limerick. Our speciality is establishing niche insurance markets for the corporate and commercial sector.

What other types of insurance does the firm specialise in?

We’re active in manufacturing and distribution, electrical contracting, the bloodstock industry, construction, leisure and financial services.

How did you become involved with Arachas? Please tell us about your own background.

I joined Arachas from my own company, Slattery Jermyn, which had built up significant expertise in the area of entertainment insurance.

How has the firm performed since it was set up?

The firm has outperformed all expectations. This year we opened a new office in Limerick to cover the Mid-West region.

What other areas do you see as having potential?

The whole media, entertainment and sporting arena is a major growth area for Arachas and we intend to consolidate and enhance our leading position in this field.