Allianz report reveals average business interruption claim exceeds 850000 euros
Financial services firm Allianz reported that average business interruption claims exceeded 850 000 euros representing a figure 70 percent higher than associated property damage claims
Business interruption claims in the insurance industry now average over €850,000, a 70% increase from the typical property damage claim of around €500,000. This highlights the significant financial impact of operational disruptions. Analyzing 7,888 claims totaling approximately €6.74bn from 2021-2025, the report shows that while claims frequency remains stable, average claim values have risen 30% annually.
Business interruption and supply chain risks remain volatile, driven by geopolitical tensions, trade fragmentation, cyber incidents, and technology dependence. Fire and explosion cause the most expensive claims, accounting for 40% of the total value, while natural catastrophes, representing 34%, are the second-costliest cause. However, most losses come from non-natural catastrophe events, which account for 74% of claims and 66% of their value.
Recovery can take longer and cost more, especially after natural disasters, due to supply chain delays, labor shortages, and volatile material costs. Concentrated production amplifies losses, with recent examples showing how fires at semiconductor factories can lead to massive business interruptions. Underinsurance is a risk as declared values may be inadequate due to inflation.
In Asia, recovery speed is increasingly crucial, as businesses operating in interconnected supply chains can face prolonged financial consequences. Regular review of declared values and business interruption exposures is essential, as inflation, supply chain disruptions, and longer recovery periods increase the risk of declared values becoming inadequate.
Resilient companies understand their critical dependencies and have immediate recovery plans. Cyber disruption is also expanding the risk landscape, with ransomware leading but cloud outages, software failures, and third-party technology provider incidents also causing significant losses. Over 48,000 cloud and software service outages occurred in 2025 alone, demonstrating the growing dependence on digital supply chains.
High-profile cyber attacks on software providers and logistics platforms illustrate the potential impact of a single cyber event on thousands of organizations.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
