Allianz Commercial released an analysis showing that the average cost of business interruption (BI) claims is approaching $1 million. That is 70% higher than the average cost of corresponding property damage claims.
The report links rising BI losses to fragile supply chains, inflation, natural catastrophes and geopolitical tensions. Claim values have risen by over 30% annually in the past two years.
Separately, a report from the nonprofit Inside Track highlighted comments by Allianz SE board member Günther Thallinger, who warned that climate change could make entire regions uninsurable.
Insurance industry executives have warned that insurers withdrawing coverage for climate-driven risks could increase uninsured losses. They said this could precede a financial crisis similar to the sub-prime mortgage crisis.