The average value of business interruption insurance claims has increased by more than 30% annually over the past two years, according to Allianz Commercial, as longer recovery periods, supply chain constraints and higher operating costs drive more expensive losses.
Claims frequency has remained relatively stable, but businesses are taking longer to restore operations following major incidents. Inflation, geopolitical instability and rising mitigation expenses have added to the financial impact.
- Average business interruption claim values increased by more than 30% annually over the past two years, despite relatively stable claims frequency.
- Fire and explosion accounted for over 40% of global business interruption losses analyzed by Allianz Commercial over five years, totaling approximately €2.9 bn ($3.3 bn).
- Business interruption and supply chain disruption ranked third in the Allianz Risk Barometer 2026, behind artificial intelligence and cyber risks.
Business interruption and supply chain disruption ranked as the third-largest concern among business leaders and risk professionals in the Allianz Risk Barometer 2026, behind artificial intelligence and cyber risk.
“While the frequency of business interruption claims has remained relatively stable over the past couple of years, the severity of losses remains a concern,” said Sarah Versavaud, Business Interruption Global Practice Group Leader at Allianz Commercial.
Recovery is often taking longer and becoming more expensive, with supply chain constraints, inflation, geopolitical developments and rising mitigation costs all contributing to higher claim values than we saw just a few years ago.
Sarah Versavaud, Business Interruption Global Practice Group Leader at Allianz Commercial
The category had occupied either first or second place in every survey over the preceding 15 years. Other major risks identified in the 2026 ranking included climate-related events, political risks, and fire and explosion.
Business interruption insurance claims analysis
Alberto Barani, Business Interruption Group Leader in Risk Consulting at Allianz Commercial, said companies face growing exposure to disruptions that prevent them from operating or fulfilling customer orders.
Such interruptions can threaten businesses’ competitive positions, particularly when production is concentrated in specialist sectors and supply chains operate with reduced inventories.
Dependence on digital supply chains, geopolitical tensions and higher mitigation costs have further increased potential losses.
Fire and explosion account for over 40% of business interruption losses
Fire and explosion remain the most expensive causes of business interruption claims, accounting for more than 40% of the value of losses analyzed by Allianz Commercial globally over the past five years.
These claims totaled approximately €2.9 bn ($3.3 bn), with fire and explosion responsible for nine of the 10 costliest man-made business interruption events examined during the period.
Major losses affected industries including energy, metal processing, chemicals, electronics, semiconductor manufacturing and defense.
Fires typically originate within insured premises and damage essential production facilities or equipment, disrupting operations beyond the immediate physical loss.
“Fire remains the leading driver of large business interruption losses we see,” Versavaud said.
While it is generally regarded as a mature and well-controlled risk, it continues to generate some of the most significant losses, with electrical faults featuring prominently among the causes of major events.
The interruption of critical production processes can prove more financially damaging than the initial fire itself.
Lithium-ion batteries have also contributed to major fire losses in recent years. Although they were not a notable source of business interruption claims in 2025, Allianz identifies them as an emerging exposure.
Natural catastrophes increase business interruption exposure
Natural catastrophes remain another major source of business interruption losses.
Global insured catastrophe losses exceeded $100 bn in 2025 for the sixth consecutive year, despite the absence of hurricanes making landfall in the United States.
Over the past five years, US winter storms and hurricanes, together with flooding in Europe and Asia, generated some of the largest business interruption losses.
Allianz Commercial noted that climate-related disruption is no longer confined to major hurricanes and earthquakes. Wildfires, severe convective storms, localized flooding and hail are also contributing materially to claims. These events can disrupt production and supply chains even when direct physical damage is relatively limited.
Costliest natural catastrophe events for business interruption insurance losses
Five of the 10 costliest natural catastrophe events for business interruption losses analyzed by Allianz Commercial are in the US. Hurricanes, winter storms and hailstorms account for five of the events.
The insurer’s analysis indicates that the rising severity of business interruption claims is closely associated with the cost and duration of restoring operations, particularly when damage affects equipment or processes essential to a company’s wider business.
