The business interruption risk environment is challenging with geopolitical tensions, trade fragmentation, cyber-related incidents and growing dependency on technology such as AI. At the same time, supply chains remain fragile with many organizations still focused on holding less stock, streamlining operations and concentrating supply – which has effectively reduced the margin of safety and ability to mitigate disruptive events.
Recovery is often taking longer and becoming more expensive, with supply chain constraints, inflation, and rising mitigation costs, all contributing to higher claim values than those seen just a few years ago.
This report from Allianz Commercial includes analysis of 7,888 business interruption insurance industry claims valued at approximately €6.74bn (US$7.82bn) over the five-year period from January 2021 to December 2025. It reveals that while the frequency of business interruption claims has remained relatively stable, their severity is rising sharply, with the average claim value increasing by over 30% annually over the past two years alone.
Allianz Commericial report´s latest analysis also shows that the average value of a business interruption insurance claim is now around 70% higher than the corresponding average property damage claim. This gap highlights a critical insight: the financial impact of being unable to operate frequently dwarfs the cost of repairing the physical damage that caused the disruption in the first place.
🔗 Find out more about business interruption claims trends in the latest report: https://ow.ly/reHB5101fhJ
Source: Allianz Commercial
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