AGCS review shows companies face rising liability losses in environmental, cyber, product defect and recall risks
Source: Asia Insurance Review | May 2017
An Allianz analysis of 100,000 claims paid out by insurers between 2011 and 2016 from more than 100 countries has revealed that the top causes of liability loss for businesses are defective product/work quality issues, crashes and human error.
In the report, “Global Claims Review: Liability in Focus”, Allianz Global Corporate & Specialty (AGCS) also warned of the increasing potential for larger, more complex and international claims resulting from global product recalls, corporate liability and cyber and environmental incidents.
The largest cause of loss stems from a defective product or work, accounting for 23% of the value of all claims. The average loss costs businesses in excess of €260,000 (US$ 275,831) with the cost of product recalls being a major driver.
According to the report, losses in excess of $1 billion are becoming more commonplace and are no longer confined to the US, and Europe, as regulators become tougher, supply chains more complex and US-style litigation and compensation awareness spread around the globe.
Additionally, new corporate liability exposures will arise from disruptive technologies such as internet of things, autonomous mobility or 3D printing, and the more complex business models of the growing “sharing economy”. A