Fire and Explosion Risks Are The Third Largest Business Issue

Allianz Global Corporate & Specialty, a global insurance company, has put out the results of their 2015 Allianz Risk Barometer.

This year’s Risk Barometer is the fourth annual survey they have performed and released. The survey was given among global businesses as well as risk consultants, underwriters, senior managers and claims experts within both AGCS and local Allianz entities during October and November 2014. The results of the survey come from the answers supplied by 516 respondents from 47 countries.

Fire and explosion risks ranked third globally for the top business risks for the year, with 27% of the survey respondents saying that it was an issue for them. This is an increase from the previous year’s survey, where 24% said it was a risk.

In the United States fire and explosion risks ranked fourth on the list, with 26% of the respondents considering it a problem. This is down from the 3rd spot it had last year, but this year a higher percentage said it was an issue, 24% said it was a risk in 2014.

A previous analysis by Allianz Global Corporate & Security found that fires and explosions are the second largest cause of business loss. It also found that the interruption of business due to the fire actually causes more financial damage than the actual fire.

In 2013 fires were eight of the twenty largest non-natural catastrophes worldwide, and caused almost four billion in insured losses.

The report found that there is a difference in fire and explosion risk based on the company size and what industry it is. For mid-corp businesses the risk is up to 39%, mid-sized companies are 32%, but only 20% of large companies listed fire and explosion risks as a concern. Fire and explosion risks were also highest in the Engineering/Construction and Manufacturing (including automotive) industries. In Manufacturing, fire and explosions are the second highest risk, with 42% of the respondents listing it.

Hughes Environmental has experience with helping companies remove fire and explosion risks from their facilities. If your company has a risk of fire or explosion contact a Hughes Environmental representative now for a free estimate of how we can help.