Simplifying business interruption losses
Prompted by the emergence of new triggers, business interruption remains a top risk according to the 2017 Allianz Risk Barometer. Given the nature of business interruption losses and the impact they can have on an organization, they can be quite difficult to measure.
Due to globalization and shifts in market trends and demands, triggers of business interruption losses are expanding from traditional damage-driven events, such as natural catastrophe or fires, to newer, formerly uninsurable events. Such events include cyber incidents, access restrictions to areas impacted by terrorism or political violence, which can result in large losses of income for companies. Managing a business interruption claim can be a challenging exercise, and understanding the complexities in mitigating business interruption losses is key to implementing effective pre- and post-event risk management strategies.
This paper examines the intricacies of business interruption losses and provides guidance on simplifying and streamlining the processes surrounding them.