Values Escalating in Industrial Insurance Claims
Industrial insurance claims over recent years show increasingly high values at risk, according to a report from business insurer, Allianz Global Corporate & Specialty (AGCS).
In its Global Claims Review 2014, AGCS identifies the top causes of loss and emerging trends from over 11,000 major business claims in 148 countries, each of above €100,000 ($136,455), with which the insurer was involved between 2009 and 2013.
Nearly 70% of financial losses arise 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.
The top 10 causes of loss over the period were:
In 2013, using industry-wide data, the 20 largest losses reported across the insurance industry totalled around €5.9bn, excluding those caused by natural catastrophes. Incidents from the oil and gas industry dominated at 40% of the total, while fire and/or explosion was responsible for eight of the top 20 losses or, at around €2.9bn, nearly half of the total loss bill.
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% higher than those from direct property damage which average €755,198.