- Business interruption & supply chain, natural catastrophes, fire & explosion top risks for companies in 2015. Cyber and political risks are biggest movers in rankings.
- Businesses least prepared for cyber risks. Loss of reputation and business interruption main cause of loss after IT security incidents. ‘Think tank’ needed.
- Long term, companies face dual challenge managing impact of climate change and technological innovation.
Downloads
Budget constraints and siloed knowledge impair cyber protection
Political risks on the rise
More severe business interruption implications
For the third year in succession business interruption (BI) and supply chain risk is the top peril in the Risk Barometer with almost half (46%) of the responses rating this as one of the three most important risks for companies, up 3% year-on-year. Fire/explosion (43%) and natural catastrophes (41%) are the major causes of BI companies fear most.
The impact of the subsequent disruption potentially affecting a company, its suppliers and customers often outweighs the physical damage itself. At $1.36m, the average business interruption insurance claim is already 32% higher than the average direct property damage claim ($1.03m). “Businesses spend a lot of time assessing direct damage and looking at their own BI impact but more work needs to be done analyzing the risks associated with suppliers and customers,” says Paul Carter, Global Head of Risk Consulting at AGCS. Supply chain risk management remains a gap in many multinational companies’ risk management programs. Many businesses still do not have alternate suppliers. “Collaboration between different areas of the company is necessary in order to develop robust processes which identify break points in the supply chain,” explains Volker Muench, Global Practice Group Leader, AGCS Property Underwriting.
Regional trends: Talent shortage fears increasing
Industry trends: Competition worries shipping, regulation concerns financial services
Dual challenge: climate change and disruptive technologies
Press Contacts
About Allianz Global Corporate & Specialty
Worldwide, AGCS operates with its own teams in 34 countries and through the Allianz Group network and partners in over 210 countries and territories, employing almost 4,700 people of 70 nationalities. AGCS provides insurance solutions to more than three quarters of the Fortune Global 500 companies, writing a total of €7.4 billion gross premium worldwide in 2017.
AGCS SE is rated AA by Standard & Poor’s and A+ by A.M. Best.