The Bond series--which was first produced by United Artists Corp., now part of Metro-Goldwyn-Mayer Inc.--has maintained its relationship with Chicago-based Aon for 40 years, a period in which the costs of insuring such risks have spiraled up and obtaining such coverage is increasingly difficult, industry experts said.

Currently, Aon is the leading broker in this field, working with the majority of studio films in the U.S. There are two other major brokers involved in motion picture productions: New York-based Marsh & McLennan Companies Inc. and Near North National Group in Chicago.

In Aon's case, Bond is one of several Hollywood blockbuster series they have recently been involved with, including the Lord of the Rings, Harry Potter and Star Wars.

With Bond, the company has been insuring the action franchise through its Los Angeles and London offices since the series began in 1962.

"We broker all the insurance that is needed for the making of Bond movies, which involves recognizing all the different stunts and making sure they are insured. These movies have a lot of difficult underwater shots, and they use special vehicles like tanks and hovercrafts. We also have to consider potential damages to public properties," Peter Robey, managing director of Aon/Albert G. Ruben, said.

Another challenge involves the films' exotic, unusual locations?the last two Bond movies included productions in Thailand, Turkey, Iceland and even Azerbaijan.

"The most difficult part is to arrange insurance for all these locations, with various laws from different countries. Companies need to make sure that they meet proper local insurance requirements for the countries that they film in," he said.

Mr. Robey has also witnessed quite a few changes since the first Bond picture came out 40 years ago.

"The insurance amount is considerably more now than it used to be. Obviously we work very hard to minimize that?that's our job. The first Bond film had a $1 million production budget, but now, it's more than $100 million, which means insurers have the potential for very large losses. For us brokers, it means making sure that costs are as low as possible," he said.

Premium rates have also been shooting up because of the hard market?they have doubled in some cases and coverage has narrowed compared to just two or three years ago.

"It's a hard market. We have been seeing rate increases anywhere from 30 percent to 50 percent and higher. Sept. 11 has also caused reinsurance to be more expensive.

"We don't foresee any relief in the near future, and we expect the premiums to continue to rise. There are several companies that have gotten out of the business, three or four in the past year alone," said Christie Mattull, senior vice president of Near North National Group, which recently offered insurance brokerage services to a number of action films including K-19: The Widow Maker and XXX.

Currently, Novato, Calif.-based Fireman's Fund Insurance Company, a subsidiary of Allianz AG, is the largest underwriter of this type. Chubb Group is another major carrier, while smaller players like The St. Paul Companies Inc. in St. Paul, Minn., and Clarendon in New York cover smaller films and music videos, Aon/Albert G. Ruben senior vice president Richard Friese said.

Mr. Robey said that a number of companies have been getting out of the business, noting CNA Insurance in Chicago no longer underwrites film productions, and that American International Group Inc. in New York is also phasing out in this field.

"It's a question of economics. Our markets have been affected with many incurred claims," Mr. Robey said.

Some of these claims can often involve major film stars: "In recent years, there have been delays in filming because of illnesses or accidents involving actors, which are covered in cast insurance. These delays in productions can be very costly. A lengthy delay in large films could result in claims of up to $10 million," Mr. Friese said.

"But now we think it's a great opportunity for other markets to come in, since rates are so high and competition is limited," Mr. Robey added. "It's very risky and there aren't a whole lot of activities to get involved in. But it's a lot more fun than anything else."