Collision or crash was the top cause for liability loss by value of claim for Asia, a new report has found.
Global Corporate and Specialty analysed more than 100,000 global claims in the corporate liability insurance market between 2011 and 2016, with 48% of local claims caused by crash or collision.
The international insurer found that 80% of global losses came from 10 causes, with defective product/work leading the way globally at 23%. Collison/crash took second place on 22%, while human error rounded out the top three at 19%.
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In Asia, natural hazard was the second biggest cause of loss at 18%, while accidental nature/damage rounded out the top three with 13%. Accidental nature/damage relates to a passenger injury due to an aircraft’s hard-landing, for example, or goods damaged during transit.
“Liability losses are ubiquitous and can range from minor incidents to major disasters, always causing third party damage or injury,” said Alexander Mack, AGCS board member and chief claims officer.
“The risk landscape for companies is constantly shifting with liability risks on the rise globally.”
Both Singapore and Hong Kong listed accident nature/damage as the top driver of claims activity following a number of incidents involving the aviation and shipping sectors.
Mack noted that the use of new technology and the rise of the internet of things will create new liability scenarios in almost every business sector as the insurance market becomes more important.
Top 10 causes of liability loss by total value of claims
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- Defective product/work
- Human error
- Accidental nature/damage
- Slips/falls/falling objects
- Water/fire/smoke damage
- Environmental damage
- Natural hazards
- Property damage