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New report notes that average large business interruption claims are 36% more costly than average property damage claim

Allianz Global Corporate & Specialty

This report analyzed more than 1,800 large business interruption claims totaling over US$3.2 billion from 68 countries, including Canada, from 2010 to 2014. Allianz Global Corporate & Specialty found that both the severity and frequency of business interruption claims is increasing, and that business interruption now typically accounts for a much higher proportion of the overall loss than was the case 10 years ago.

The document focuses on global developments in business interruption-related insurance claims over the period 2010 to 2014, identifying the top causes of losses and other trends across a number of different business sectors, regions and countries. It also examines a number of emerging risks that will impact global businesses and the insurance claims landscape in future.

Globally, the top causes of BI loss by total value (2010-2014) for claims more than 20,000 euros are: fire and explosion (59%); storm (6%); machinery breakdown (5%); faulty design/material/manufacturing (5%); strike/riot/vandalism (4%); cast loss (entertainment) (3%); flood (3%); collapse (3%); human error/operating error (2%); and power interruption (2%).

Average BI losses are highest by value for claims originating from energy (US$4.3 million) and property (US$2.4 million) lines of insurance, followed by engineering (US$1 million) and entertainment (US$300,000). As well, the cost of large energy claims has been rising (see image below), with BI now accounting for a higher proportion of loss totals, as exposures have increased due to larger onshore energy facilities and growing interdependencies between companies resulting in regional contingent business interruption (CBI) claims if one plant is disrupted.

Download this report by clicking on the link below.

http://www.agcs.allianz.com/assets/PDFs/Reports/AGCS-Global-Claims-Review-2015.pdf

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