Business Interruption Losses Increasing in Frequency, Severity, Allianz Report Finds

Corporate risk managers cite business interruption as the most significant risk they face these days, due to the interconnected nature of systems, industries, and supply chains, according to a new report, “Global Claims Review 2015: Business Interruption In Focus,” from Allianz Global Corporate & Specialty (AGCS).

AGCS found that business interruption losses now account for the majority of nearly all large property insurance claims, at an average of $2.38 million, 36 percent higher than the related average direct property damage loss. In the last five years, BI claims have been a primary loss driver for large losses following fires, storms, floods, and earthquakes, according to AGCS’ review of over 1,800 large BI claims from 68 countries.

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Ayers, Erin. ‘Business interruption losses increasing in frequency, severity, Allianz report finds’. ©2015 Advisen Ltd. 18 December 2015.