New research from Allianz Global Corporate & Specialty reveals the top cause of business loss is ship groundings.
AGCS’ Global Claims Review 2014 analyzed more than 11,000 business claims in nearly 150 countries and found 70 percent of financial losses come from 10 causes:
Top Causes of Loss by total value (2009-2013, insured losses over 100,000 euros/$136,455)
AGCS said the Costa Concordia loss in 2012 is the reason grounding occupies the top spot on the list but ship groundings are relatively infrequent. Crew negligence is often a main driver behind many of the top causes of loss, with it being a potential contributing factor in over 60 percent of claims over 1 million euros ($1.4 million).
The cost of aviation claims is going up due to use of new materials and aircraft complexity, though attention to airline safety has led to fewer catastrophic losses–despite 2014’s loss activity. Additionally, on-the-ground incidents make up a large portion of claims from this industry.
“Bird strikes are a notable cause of loss in the analyzed claims, averaging $22.8 million every year (2009-13) with a total of 34 incidents,” said AGCS. “Annual damages have been estimated at $400 million in the US. Birds are not the only animals that can cause aviation losses, with claims arising from zebras in Africa and cows in Asia and Latin America.”
Excluding natural catastrophes, the 20 largest losses reported across the insurance industry totalled about $8.1 billion in 2013, according to AGCS. The oil and gas industry produced a majority of major losses–40 percent of the total.
READ: Allianz Global Corporate & Specialty Global Claims Review 2014
Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].
