Business and supply chain interruption top business concern: AGCS
Business and supply chain interruption remains the top concern for businesses globally, according to a new report by insurer Allianz Global Corporate & Specialty (AGCS).
Business interruption has remained the top risk for the fourth successive year, according to the Allianz Risk Barometer 2016.
The barometer surveys more than 800 risk managers and insurance experts from over 40 countries.
It found that many companies are concerned that business interruption losses, which usually result from property damage, will increasingly be driven by cyber-attacks, technical failure or geo-political instability as new “non-physical damage” causes of disruption.
But the risk landscape is substantially changing: market developments and cyber incidents have featured in the top three risks for the first time. Cyber incidents are also cited as the most important long-term risk for companies in the next ten years.
In contrast, natural catastrophes dropped two positions to fourth year-on-year, reflecting the fact that in 2015 losses from natural disasters reached their lowest level since 2009, according to the data.
More than a third of responses (34 percent) cited market developments such as intensified competition or market volatility/stagnation as one of the three most important business risks in 2016, ranking this new survey category as the second top peril overall.
Many businesses are facing a growing number of challenges which threaten their profitability and possibly also their business models also according to the report.
“The corporate risk landscape is changing as many industrial sectors are undergoing a fundamental transformation,” said Chris Fischer Hirs, chief executive officer, AGCS.
“New technologies, increasing digitalisation and the ‘Internet of Things’ are changing customer behaviour, industrial operations and business models, bringing a wealth of opportunities, but also raising awareness of the need for an enterprise-wide response to new challenges. As insurers we need to work together with our corporate clients to help them to address these new realities in a comprehensive manner.”
