Surge in Business Interruption Insurance Claims: Key Insights

Business interruption insurance claims have surged over 30% annually, reveals Allianz Commercial, owing primarily to protracted recovery periods and supply chain disruptions.

This trend mirrors escalating operational costs and extended recovery times for businesses grappling with major incidents. Contributing factors, including inflation, geopolitical tensions, and higher mitigation costs, are further intensifying these financial impacts. Despite stable claims frequency, the Allianz Risk Barometer 2026 indicates that business leaders and risk professionals now rank business interruption and supply chain disruption as their third biggest concerns, trailing only artificial intelligence and cyber risk.

Rising Costs and Emerging Risks

Allianz Commercial attributes the heightened value of business interruption claims to constraints such as inflation and geopolitical factors. Insurers are seeing higher claim values that reflect these increased costs compared to previous years. Historically, business interruption has been a perennial top concern among risk managers for over 15 years. In the 2026 ranking, climate-related events, political risks, and fire and explosion threats also remain significant.

According to Alberto Barani from Allianz, businesses face growing exposure to disruptions impacting their operations or customer order fulfillment. This heightened vulnerability, notably in specialized sectors like energy and electronics, can jeopardize competitive positioning. The interconnectedness of digital supply chains, geopolitical tensions, and rising mitigation expenses add layers of complexity and potential loss.

Fire and Explosions: Persistent Threats

Fire and explosions persist as the most costly causes of business interruption claims, constituting over 40% of loss value analyzed globally by Allianz in recent years. These incidents, amounting to losses of approximately €2.9 billion ($3.3 billion), have severely impacted industries such as metal processing, chemicals, and defense. Predominantly started within insured facilities, these fires often damage critical infrastructure, leading to significant interruptions.

"Fire remains the leading driver of large business interruption losses we see," said Sarah Versavaud of Allianz Commercial.

Emerging risks, such as lithium-ion batteries, while not yet primary drivers, are contributing to fire-related losses. Moreover, electrical faults are commonly cited as causes of substantial disruption, sometimes exceeding the damage from the initial fire incident itself.

Impact of Natural Catastrophes

Climate-related disruptions continue to escalate in severity. Global insured catastrophe losses surpassed $100 billion in 2025 for the sixth consecutive year. These disruptions extend beyond major hurricanes and earthquakes to include wildfires, storms, and localized flooding, thereby significantly impacting claims.

Implications for Industry Professionals

The growing severity of business interruption claims highlights critical considerations for insurance professionals. Underwriters must evaluate emerging risks, including evolving causes of fire and political instability, to better price policies and manage risk. Additionally, claims management teams will need to adapt strategies to handle increasing claim complexities and costs efficiently.

For brokers and agents, understanding these trends is essential in advising clients on comprehensive coverage options that mitigate their exposure to increasingly intricate and costly interruptions. As the industry adapts, staying informed on these developments will be instrumental in safeguarding business continuity and competitive advantages.