Industrial insurance claims are reaching increasingly high values according to a report from Allianz Global Corporate & Specialty (AGCS).
In its Global Claims Review 2014, AGCS has identified the top causes of loss and emerging trends from over 11,000 major business claims in 148 countries, each of above €100,000, with which it has been involved between 2009 and 2013.
The analysis shows that nearly 70 percent of financial losses arose from 10 causes of loss, with the largest single identified cause being ship groundings, reflecting the high values of modern shipping risks, followed by fires and aviation crashes.
In 2013, incidents from the oil and gas industry dominate the major losses, at 40 percent of the total, while fire and/or explosion was responsible for eight of the top 20 losses or, at approximately €2.9 billion—nearly half of the total loss bill.
So far in 2014, 80 percent of the major reported losses have come from aviation incidents or fires, particularly in the energy sector. The largest loss, a fire at a Siberian refinery complex in June, was reported to be around €586 million.
The growing relevance of business interruption (BI) as a consequence of losses in property insurance, heightened by lean supply chains and globalised manufacturing, is shown with average losses from BI at €997,602—32 percent higher than those from direct property damage €755,198.
AGCS’s chief claims officer, Alexander Mack, commented: “AGCS’s diversified global business gives us unique insights into the sharp end of industrial insurance in terms of current claims experience and future trends—such as the growing importance of [BI] losses.”
“By sharing this analysis, we hope to demonstrate the key role that effective claims service plays in getting businesses back on track when disaster strikes.”
