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Business interruption claims rise as average payouts top €850,000
Allianz Commercial analyzed 7,888 business interruption insurance claims valued at about €6.74 billion from 2021 to 2025, with average claim values climbing more than 30% per year over the past two years.
Allianz Commercial says companies are seeing a sharp increase in business interruption insurance losses, with average claims exceeding €850,000, about 70% higher than the average associated property damage claim. The insurer noted that average property damage claims are coming in close to €500,000, highlighting how operational downtime costs can exceed physical repair costs.
The analysis attributes rising business interruption costs to factors including greater reliance on technology, inflation, geopolitical instability, vulnerable supply chains, and centralized production. According to the report, claims frequency has remained relatively stable, but the average value of claims has increased by more than 30% annually over the past two years.
Allianz’s report analyzed 7,888 business interruption insurance industry claims with a total value of about €6.74 billion, or US$7.82 billion, covering the period from January 1, 2021 through December 31, 2025. Allianz Commercial CEO Thomas Lillelund said business interruption and supply chain risk remains elevated and volatile in a challenging operating environment.