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.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more