Insurance coverage Business Interruption (BI) is listed as the most important business risk of 2021 in Allianz Risk Barometer this year. Business Interruption is three “COVID trio” which include pandemic outbreak and cyber incidents.
There were 2,769 respondents from 92 countries and 22 industry sector making the tenth Allianze Risk Barometer biggest to date. BI is recognized as the biggest risk by 44% of the respondents and ranked top in nine countries and some of the American region.
Multiple sectors like chemical, pharma, and biopharma; consumer goods; engineering and construction; real estate; food and beverages; manufacturing; mining; oil and gas; renewable energy; retail and wholesale; and transportation ranked it in the top.
“The COVID trio [BI, pandemic outbreak and cyber] has identified specific exposures that companies have had to deal with almost simultaneously,” said Heather Thompson, ARC Multiline Engineer at Allianz Global Corporate & Specialty (AGCS).He further added, “We’ve all been affected by the pandemic, but some companies were exposed to vulnerabilities they never even knew existed. Even the best-prepared companies were unprepared for the size, the scope and the duration of the pandemic.” ‘In search of post-COVID-19 resilience’ found that 55% of companies are considering looking for new suppliers in the next six to 12 months, and 62% are considering it in the long-term. While less than 15% of companies are considering reshoring, around 30% of respondents said they would favor nearshoring – bringing production to a nearby country’ was mentioned in a recent Global Supply Chain Survey by Euler Hermes.
