Where the money went: The 10 biggest causes of claims

Aviation-related claims are the biggest driver of insured losses in Australia, according to an Allianz Global Corporate & Specialty (AGCS) annual report released yesterday. They make up 32% of the €1.6 billion ($2.5 billion) of claims paid by the industry over a five-year period from July 2013 to this year. Events under this category include damage caused by collisions or crashes, faulty maintenance, travel issues, ground-handling incidents, over and under-shooting runways, emergency or forced landings and damage caused by bird strike. Defective products and hailstorms shared second spot on 9%, and professional indemnity and directors’ and officers’ (D&O) were joint third on 8%. Damaged goods (16%) tops the list based on numerical share of the 3608 claims received during the five-year period. Professional indemnity placed second on 15% followed by aviation (11%), defective products (7%), storm (6%) and other (45%). AGCS predicts D&O claims to trend upwards in Australia, which is regarded as one of the most litigious countries outside of the US. Australia, the US and Germany have the most D&O claims in the world, AGCS says. “Australia, for example, has experienced a sharp rise in D&O activity in recent years, caused by more litigation. “Class action lawsuits and more litigation funders have made Australia one of the most litigious countries outside the US from a business perspective. “It is now relatively easy to build and fund a class action in the country, where consumer-friendly laws have supported an increase in class actions and larger settlements.” Globally, fire and explosion-linked claims dominate with a 24% share of the €58.1 billion of claims received during the five-year period to last July. Following are the top 10 global causes of loss by value of claims: 1. Fire/explosion 24% 2. Aviation collision/crash 14% 3. Faulty workmanship/maintenance 8% 4. Storm 7% 5. Defective products 6% 6. Damaged goods 5% 7. Machinery breakdown 5% 8. Water damage 3% 9. Ship sinking/collision 2% 10. Professional indemnity 2% 


Recent Posts

Archive

Follow Us

  • Grey Facebook Icon
  • Grey Twitter Icon
  • Grey LinkedIn Icon

Phoenix Risk Services Pty Ltd / ABN 12 617 229 188 / AR 1252319 || Licensee: PSC Connect Pty Ltd ABN 23 141 574 914 AFS License No 344648

Privacy | Complaints

 

Phoenix Risk Services Pty Ltd endorses the Insurance Brokers Code of Practice. To obtain a copy of the code click here