At-a-glance claims data identifying the top causes of business interruption losses for businesses and breakdown of claims by incident, business sector and region. 1,807 claims (including 1,658 base claims) with a total value of €3.03bn were analyzed over the 2010-2014 accident years. Lines of business analyzed across the AGCS portfolio:
• Financial Lines
Top causes of business interruption losses across all lines of business*
Breakdown of business interruption (BI) claims by buisness sector
Property is the main driver of BI losses, accounting for 65% of all claims by value.
Mid-Corporate, which covers small- to mid-sized businesses across different industries, including property and liability coverage, receives the most claims.
Average value of BI claims and average notification time from date of loss per LoB
The average BI claim is now in excess of €1m. The high values at risk in the oil and gas industry are reflected by the high average BI claim value in the energy sector.
BI claims are complex and difficult to quantify. With indemnity periods of at least 12 months, claims can take time to settle.
Notification of a loss to the insurer from a business can take more than 100 days, which reflects the complexity of such cases in industrial environments, especially where triggered by contingent business interruption claims.
Top causes of business interruption (BI) loss per region (by value) Claims value >€20,000
Although Fire & Explosion is the top cause of business interruption (BI) loss around the globe, there are some differences regionally, the insurance claims analysis shows. Storm and flood related losses are notable in Asia, reflecting the region’s continuing economic development and increasing exposure to natural hazards. Storm is the top cause of BI loss in the Caribbean & Central America region, accounting for a third of claims by value.
Note: Some regions such as Asia or Africa are notable for relatively large single losses which skew the results. In Asia, the results are distorted by one strike-related event, and in Africa, a similar one-off event raises the relative importance of collapse as a loss cause.
Top causes of business interruption loss per country (by value - selected countries only) Claims value >€20,000
Key Statistics: Analysis includes Allianz Global Corporate & Specialty claims and those from other insurers
Total number of claims analyzed: 1,807 including 149 very large events*
Total value of claims: €3.03bn of which very large events total: €1.34bn
Average claim value of all claims analyzed: €1.68m
Countries in which claims arose: 68
Total number of base claims** analyzed: 1,658
Total value of base claims: €1.69bn
Average value of base claims: €1.02m
Average Euros paid per day: €1.66m
Methodology: AGCS has analyzed 1,807 business interruption insurance claims from 68 countries with a total value of more than €3bn, recorded for the accident years 2010-2014, each with a total value after deductible of €20,000 or higher, including all its traditional lines of business (excluding Allianz Risk Transfer). All claims figures quoted are 100% (not only the AGCS share, but including coinsurers’ shares) and exclude deductible (i.e they represent the full payment made). While the losses analyzed are not representative of the industry as a whole, they give a strong indication of the major business interruption risks which dominate industrial insurance.
Very large events* AGCS identified four major events during the analysis period – a US tornado (2011) the Japanese earthquake (2011), the Thailand floods (2011), and Superstorm Sandy (2012), as well as eight other claims which differ relative to normal claims activity in the impacted lines of business. These events totalled 149 claims.
Base claims** All other business interruption insurance claims.