Surprising trends you should know today
A new global report, analyzing over 470,000 corporate insurance claims over the period July 1, 2013 to July 1, 2018, has identified the top 10 causes of loss and other trends across a number of different business sectors. The top 10 list is below.
Here are a few big takeaways...
1. Biggest Cause - the largest single identified cause was fire/explosion which accounted for almost a quarter (24%) of all claims. Aviation collision/crashes ranked second (14%) and faulty workmanship/maintenance came in third at 8%.
2. Percent Preventable- Surprisingly, the only natural catastrophic event to appear on the list is storm (#4). The vast majority of losses were caused by technical or human factors (87% of the total value and 95% of claims by number).
3. Increased Business Income Losses- Almost all of the large property insurance claims included a business interruption element which accounted for over ½ of the dollar value of the loss. In the past, the split might have been nearer to 50:50. (quick-check your limit here - business income calculator)
4. Most Frequent Claim - Claims involving damaged goods, which can result from causes such as storage, handling, loading or unloading, and transit, constitute the most frequent losses for insurers, accounting for 11% of all claims by number around the world, but just about 5% in dollar value.
As we see it, the elephant in the room is the fact that a significant portion of many claims go unpaid because the insurance and/or the limits needed to fully cover the claim just weren't there.
The goal is well-considered coverage with ample limits, financially healthy deductibles, claim elimination, and lower costs including competitive premium cost.
VANTREO is here to assist you.
If you have a question about your insurance plan or our tech-based services, just let your VANTREO broker or account manager know.
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