Source Allianz.
Technology is breeding new threats as well as business models. Traditional risks such as natural catastrophes continue to challenge while other threats such as cyber, neck-and-neck with business interruption at the top of the Allianz Risk Barometer 2019 for the first time, reputational risk, increasing exposure to intangible assets and volatility and consolidation in the corporate environment evolve daily.
A consequence of many of the other top risks in the Allianz Risk Barometer, business interruption (BI) is the top threat for companies for the seventh year running (37% of responses). According to AGCS, the average BI property insurance claim now totals over €3mn ($3.4mn) at €3.1mn. This is more than a third (39%) higher than the corresponding average direct property damage loss (€2.2mn) with these totals significantly higher than five years ago. Losses from the largest events can be in the hundreds of millions or higher.
The eighth Allianz Risk Barometer is the biggest yet incorporating the views of a record 2,415 respondents from 86 countries. The annual corporate risk survey was conducted among Allianz customers (global businesses), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers and claims experts in the corporate insurance segment of both Allianz Global Corporate & Specialty (AGCS) and other Allianz entities. Respondents were questioned during October and November 2018. The survey focused on large and small- to mid-sized enterprises.
Businesses face an increasing number of BI scenarios. Many can occur without physical damage but with high losses. Events such as breakdown of core IT systems, product recall or quality incidents, terrorism, political violence or rioting and environmental pollution can bring businesses to a standstill, meaning firms may be unable to provide products and services – or customers stay away – having a devastating effect on revenues. For example, retailers lost about €1bn ($1.1bn) from four weekends of protests in France at the end of 2018. In today’s uncertain political landscape, legislative change such as the UK’s expected Brexit departure from the European Union in 2019 also poses a potential BI threat with supply chain disruption anticipated. Read more
In the news
Popular articles
Sign up as a member
