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Fire and explosion drive rising business interruption claim severity
Allianz Commercial said the average business interruption claim value topped €850,000, about 70% higher than the average property damage claim near €500,000.
Allianz Commercial analysis shows business interruption insurance claims have become more severe, with average claim values now running about 70% higher than average property damage claims, and continuing to rise sharply, according to Risk & Insurance.
The average value of a business interruption claim now exceeds €850,000, compared with close to €500,000 for property damage claims. Allianz Commercial said it reviewed 7,888 business interruption claims totaling about €6.74 billion between January 2021 and December 2025, and found claim frequency stayed relatively stable while severity climbed, with average claim values rising more than 30% annually over the past two years.
The carrier identified fire and explosion as the costliest cause of loss, accounting for over 40% of total analyzed claims value, or roughly €2.9 billion. Risk & Insurance reports the same cause was behind nine of the 10 costliest man-made business interruption events in the five-year period.