The emergence of Media RiskManagement (MRM) is significant news for independent filmmakers, given only ahandful of companies offer completion bonds and the difficulty of securingreinsurance usually prevents new players from appearing.
Melbourne-based GeorgeAdams, who was one of the executive producers on Wolf Creek, and Roger Brewitt have set up in association with SantamRisk Finance Ltd, a wholly-owned subsidiary of South African insurance giantSantam. Lloyds of London and Munich Reinsurance are the underwriters.
"Getting the underwriting inplace was always going to be the tough thing,"
"These markets are becomingmore sophisticated and are growing. Yes, they are culturally challenging, butto ignore them would be insane from a business point of view."
MRM has not signed on anyclients yet but has letters of intent on four projects, including a substantialdocumentary to be shot in
"There are two very goodplayers in
All the bonds issued onAustralian films are either from US-based Film Finances or cineFinance, whichare 55 and 30 years old respectively. The third key global player, IFG, concentrateson
"I will be surprised if thismarket can sustain three companies given the cost of reinsurance, servicingproductions properly and other overheads," said Milliken.
Customers pay 2.8-3% of thebudget on a completion bond and have to put aside a 10% contingency. Accordingto
But FACB CEO Rob Fisher, whowas
"We have spent time, moneyand energy trying to develop that market, including the establishment ofrelationships in
"In the short-term,indigenous industries are not going to require or embrace bonds, although somefilms firmly rooted in