Top reasons for corporate insurance losses identified in new AGCS Global Claims Review
Posted on: 17 December 2018
A total of 471,326 corporate insurance claims from over 200 countries and territories around the world were analysed for the Allianz Global Corporate & Specialty (AGCS) Global Claims Review 2018.
Of 10,207 claims from July 2013 to July 2018 in the UK (worth approximately €2.3bn):
By value of claims:
- Professional indemnity (e.g. negligence/misadvice): 28%
- Fire/explosion: 28%
- Defective products: 13%
- Storm: 6%
- Faulty workmanship/maintenance: 6%
By number of claims:
- Professional indemnity (e.g. negligence/misadvice): 34%
- Damaged goods (including handling/storage): 13%
- Defective products: 9%
- Faulty workmanship/maintenance: 7%
- Slips and falls: 3%
Fire is the most expensive cause of loss in the UK, with interruption-related losses being a significant contributor. However, professional indemnity beats it to the top spot due to the number of claims paid out.
The only other country (of the range selected for focus) to feature professional indemnity in its highest ranking claims (both for number and value) was Australia.
Within the analysis, the financial lines sector is pulled out as a key contributor to the amount of professional indemnity claims being made; in fact, 76% of claims against businesses in the industry are for professional liability issues. Additionally, cyber and data protection issues are highlighted as a growing source:
Professional indemnity losses such as negligence, misadvice or non-compliance with laws and regulations are the top cause of claims [worldwide] by value (61%). However, cyber-related losses in financial lines insurance are beginning to emerge with an increase in notifications already evident. Data protection violations are one of the most frequent reasons for cyber-related claims notifications.”
- p7, Industry outlooks and loss trends: Financial lines
A common theme to take note of is the presence of damaged goods and faulty workmanship/maintenance (which are ranked first and second respectively for global number of claims received) in the top rankings for each selected country. Defective products also seem to be a prime issue across Europe.
Get further insight into insurance claims trends across the globe:
Previous AGCS Global Claims Reviews: