Business interruption has ranked first in the top 10 risks internationally for the seventh consecutive year, according to the eighth Allianz Global Risk Barometer.
The Allianz report showed that business interruption is still regarded as a primary risk globally, with business interruption claims averaging $3.4 million globally – that’s 39% higher than the average direct property damage loss and both are significantly higher than five years ago, with the potential to run into hundreds of millions.
“Businesses across Asia Pacific are deeply concerned about the impact of business interruption,” said Mark Mitchell, CEO of Allianz Global Corporate and Specialty for Asia Pacific, noting that the average BI property insurance claim for the region is now more than $4,750,000, considerably higher than the global average. “As manufacturing shifts east, and with growing frequency of natural catastrophe activity in the region, Asia Pacific is increasingly exposed to these losses.”
Also identified as top global risks were cyber incidents (37%), natural catastrophes (28%), changes in legislation and regulation (27%), market developments (23%), fire, explosion 19%, new technologies (19%), climate change/increasing volatility of weather (13%), loss of reputation or brand value 13%, and shortage of skilled workforce (9%).
The Allianz report collected data from business customers, brokers, industry trade organisations, and risk consultants from 22 industry sectors across 88 countries late last year.