According to a recent report by Allianz, the total value of business interruption claims has reached €6.74 billion from 2021 to 2025. This figure is based on an analysis of 7,888 insurance claims. The average payout per claim exceeded €850,000, highlighting the significant financial impact of business disruptions on companies. This substantial cost reflects the financial losses incurred due to halted production and commercial activities.
The analysis conducted by Allianz spanned from January 2021 to December 2025 and covered a total of 7,888 claims, amounting to €6.74 billion, or approximately $7.82 billion. The results indicate that financial losses due to business interruptions pose a growing challenge for both companies and insurance providers. This is particularly relevant in sectors that rely heavily on continuous production, availability of raw materials, and regularity of supply chains.
Fire and explosions accounted for over 40% of the total business interruption claims analyzed, amounting to approximately €2.9 billion, or nearly $3.3 billion. Fires were responsible for nine of the ten most expensive business interruption incidents not related to natural disasters during the study period. This highlights the extensive impact of industrial accidents on production processes and supply chains.
Natural disasters ranked second in terms of the value of business interruption claims, accounting for 34% of the total value and 26% of the claims analyzed. The combined impact of fires and natural disasters constituted over 75% of the total value of business interruption claims. Conversely, non-natural disaster-related accidents made up 74% of the claims and 66% of their value.
The analysis also considered the risks associated with increased reliance on cloud services and software. Technical failures and cyberattacks can disrupt operations even without physical damage to buildings or equipment. The report emphasized the importance of developing business continuity plans, enhancing fire prevention measures, preparing for natural disasters, and securing digital systems.
The findings from Allianz underscore that managing business interruption risks has evolved beyond protecting physical assets. It now encompasses ensuring continuity of production and supply chains. This highlights the importance of combining suitable insurance coverage with disaster recovery plans to mitigate potential financial losses.
Effective management of business interruption risks can significantly limit the cost of insurance claims. By adopting proactive measures, companies can minimize the financial impact of business disruptions and ensure a faster recovery.
Key points
- The average business interruption claim payout exceeded €850,000.
- Fires and explosions accounted for over 40% of total business interruption claims.
- Natural disasters made up 34% of the total value of business interruption claims.
