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:
- Grounded ships.
- Aviation crashes.
- Bodily injury, including fatalities.
- Professional indemnity.
- Product defects.
- Machinery breakdown
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.
Data from S&P Global Market Intelligence suggest that the German lender is struggling to meet capital and earnings figures.
Forecasts for 2016-2020 place Africa as the second fastest growing region in the world (at a compound annual growth rate (CAGR) of 4.3%), just below Emerging Asia.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.