Allianz Global Corporate & Specialty (AGCS) analysis of more than $1bn worth of insurance claims over five years involving Technology, Media and Telecommunications (TMT) companies identifies some of the top causes of loss from this sector.
This article is part of the
Global Risk Dialogue - 01/2023
According to the dataset, natural catastrophes remain a major concern for Technology, Media and Telecommunications (TMT) companies, even if their main assets are in the cloud. They may not store large amounts of goods or inventory, but they have physical servers and office buildings. Many are located in coastal cities or campuses so if they are hit by a hurricane, tornado or an earthquake, both material property damage and additional business interruption losses from flooding can be significant as insurers have seen from claims experience in recent years.
Willful acts/crime is the third top cause of loss according to value, as well as being the most frequent cause of claims in the analyzed dataset, accounting for around one in five claims by number. As a loss category it covers a variety of different causes, ranging from the theft of high-value telecommunications equipment while in transit to cyber incidents such as hacking.
Recent years have also seen TMT companies file claims for damages to property and infrastructure, including fires resulting from riot, looting and civil commotion activity in the wake of protests such as those surrounding the murder of George Floyd by the police in the US in 2020.
Top 5 causes of claims by value in Technology, Media & Telecommunications
The analysis was conducted on 5,006 claims worldwide worth approximately €1.2bn, between January 1, 2017 and December 31, 2021, involving telecommunications, media and television broadcasting and production companies. Claims total includes the share of other insurers in addition to AGCS. Source: Allianz Global Corporate & Specialty.
The material contained in this publication is designed to provide general information only. Projections are inherently subject to substantial and numerous uncertainties and changes. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the projections made in this publication. While every effort has been made to ensure that the information provided is accurate, this information is provided without any representation or warranty of any kind about its accuracy and Allianz Global Corporate & Specialty SE cannot be held responsible for any mistakes or omissions.
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