Australian business largely uninsured against Asian supply chain business interruption risk

Australian business largely uninsured against Asian supply chain business interruption risk

21 December 2015




The series of explosions that rocked the Chinese port city of Tianjin in August 2015 is expected to be the costliest manmade disaster in Asia’s history and the combined insured
and uninsured business interruption losses are likely to emerge as the major driver of total costs arising from this event.

Allianz Global Corporate & Specialty (AGCS) has released a report on global developments in business interruption related claims over the period 2010 to 2014 that is recommended reading for any business involved in international commerce.

As the Regional Claims Manager for the Pacific at AGCS, Joerg Ahrens, points out “most Australian and New Zealand businesses are now heavily reliant on global supply chains based in Asia where there appears to be an increasing exposure to natural hazards. The greater interconnectivity between businesses is manifesting itself into more complex business interruption exposures that are not often factored into current business continuity plans.”

Key findings of the report are:


The skills and expertise to deal with the growing complexity of business interruption claims makes it far more important for businesses to pay closer attention in selection of its insurance carrier to ensure the insurer’s claims department has the capabilities to deal with these more complex types of losses.

Pre-loss meetings between insurers and businesses that establish clear processes of what to do in the event of an incident and how and who to communicate are becoming increasingly more important.

The report contains information on lessons learned and recommendations for a business in managing its contingent business interruption exposure. It can be downloaded from the AGCS website at www.agcs.allianz.com.

About Allianz Global Corporate & Specialty
Allianz Global Corporate & Specialty (AGCS) is the Allianz Group's dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: Marine, Aviation (incl. Space), Energy, Engineering, Entertainment, Financial Lines (incl. D&O), Liability, Mid-Corporate and Property insurance (incl. International Insurance Programs).

Worldwide, AGCS operates in 27 countries with own units and in more than 160 countries through the Allianz Group network and partners. In 2014 it employed more than 3,500 people and provided insurance solutions to more than half of the Fortune Global 500 companies, writing a total of €5,4 billion gross premium worldwide annually.

About Allianz Australia
General Insurance Company of the Year 2014, 2013, 2012, 2011, 2009*
Best General Insurance Company of the Year 2014, 2012, 2010, 2007, 2006**

Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services to more than 2.5 million policyholders. Over 50% of Australia's top 200 BRW-listed companies have some form of insurance cover with the group and the group provides workers compensation services to around one-fifth of Australian employees.

*Australia & New Zealand Insurance Industry Awards
**Australian Banking and Finance Insurance Awards