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GLOBALLARGE LOSS
CRAWFORD GTS®
AN OVERVIEW
TO GTS™
OPERATIONS
One of Crawford’s core competencies is our ability to handle large orcomplex claims, an area of expertise that resides in our Global TechnicalServices (GTS) service line. Whether the claim involves a catastrophicweather event, a virulent wildfire or a cyberattack, GTS is equipped torespond quickly and cost-effectively to any such occurrence.
We serve a wide variety of industries, covering virtually every industryand every geographic region. We offer real world understanding of howlarge losses impact the business of a corporation. Our professionals aresophisticated partners with requisite academic and industry qualifications.From forensics to engineering, accounting, chemistry and beyond, we bringthe necessary expertise to every conceivable situation.
With our vast global footprint and breadth of services, Crawford is able to provide insight on claims by many criteria, including industry sector, product lines and prominent perils. This robust reporting capability is not only used for internal reporting purposes but also for strategic planning on a range of issues, such as succession planning and resource management. We can also provide specific reports and analysis as requested by individual. The analysis in this report is based on claims involving US$500,000 in indemnity dollars or more where Crawford GTS have received instructions. As such it is not necessarily reflective of the broader trends within the Insurance and Reinsurance Market as a whole.
The enclosed report is based on open and closed claims from the date of loss. This report provides a high level overview of those claims as well as a more detailed look back over the last five years, from 2013 to 2017.
ABOUT THIS REPORT
Overview
Industry Snapshot
Claims by Peril
Claims by Product Line
Our Client Base
TABLE OF CONTENTS
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Crawford tracks claims in a variety of ways. For the purpose of this report, Crawford has identified claims by date of loss. As of 2017, Crawford has managed more than 29,000 large loss claims representing more than $75 billion in indemnity dollars for claims incurring $500,000 or more indemnity dollars.
Throughout this report, you will find a more detailed breakdown of how these claims are classified - by industry sector, product line, peril and more. As the report includes open and closed claims, data is subject to change. This report in based on data gathered in February 2018.
OVERVIEW
29,452 CLAIMS25,419 CLOSED
4,033 OPEN
1
$75.4 BILLIONINDEMNITY DOLLARS
(OPEN AND CLOSED CLAIMS)
2,5152,368
2,5902,382
2,125
2013 2014 2015 2016 2017
INDEMNITY DOLLARS (USD) MANAGED BY REGION (IN BILLIONS)
461TOTAL ADJUSTERS*
$9.34ASIACANADACEMEALATAMPACIFICUK/IRELANDUSA
77
66
29
129
111
20
29
$3.65$19.87
$8.42$8.41
$17.52$8.15
2
In the last five years, the volume of claims received by Crawford GTS greater than US$500,000 by year has remained relatively steady.
The Central Europe/Middle East/Africa regions account for the highest amount of indemnity dollars managed, followed closely by the UK/Ireland regions.
5-YEAR REVIEW
INDEMNITY DOLLARS (USD)
VOLUME OF CLAIMS BY NUMBER OF ASSIGNMENTS (2013-2017)
MANAGED BY REGION
3
Pharmaceutical
Telecommunication
Agriculture & Food 4
Building & Construction1
INDUSTRY SNAPSHOT
15IN
DUST
RYSE
CTOR
S
Power & Energy
Banking & Finance
Cyber Risk
Environmental Risk
Marine & Transportation
Media & Entertainment
Mining Technology
Industrials & Engineering 2Retail3
Personal Lines 5
An industry snapshot shows the rapid growth of Building and Construction (a 43 percent increase from Crawford’s 2015 Large Loss report), followed by Industrial and Engineering.
Retail, Personal Lines and Agriculture & Food production have become sectors within which we are seeing not only a higher volume of claims but also higher individual claim values. Since 2015, Retail claims have seen an increase of 43 percent. Agriculture and Food claims have increased by 39 percent, and Personal Lines claims increased 35 percent.
TOP 5 INDUSTRIESBY NUMBER OF ASSIGNMENTS
6,832
5,600Building & Construction
Industrials &Engineering
2,616Agriculture& Food
2,381PersonalLines
3,160Retail
CANADAPERSONAL LINES
798ASIAINDUSTRIALS & ENGINEERING
1,269
LATIN AMERICACARIBBEAN
USABUILDING & CONSTRUCTION
1,576
INDUSTRIALS & ENGINEERING
460
UKBUILDING & CONSTRUCTION
2,158
CENTRAL EUROPEMIDDLE EASTAFRICAINDUSTRIALS & ENGINEERING
1,265
PACIFICBUILDING & CONSTRUCTION
1,231
BUILDING & CONSTRUCTION
INDUSTRIALS & ENGINEERING
PERSONAL LINES
MOTOR & AUTO
18,207
2,342
2,247
1,398
487667
4,082
WC/EMPLOYER’S LIABILITY/MED MGMT
MARINE & TRANSPORTATION
RESIDENTIAL PROPERTY
CATASTROPHE
LIABILITY
COMMERCIAL PROPERTY
29,452TOTAL CLAIMS
Commercial Property accounts for 62% of total claims by product line, followed by Liability and Residential Property.
4
TOP INDUSTRY CLAIMSBY REGION
CLAIMS BY PRODUCT LINE
Building and Construction claims are most prominent in the UK and the USA, with the largest volume residing in the UK market. Industrials & Engineering claims are most heavily concentrated in Asia, Central Europe/Middle East/Africa and the Latin America/Caribbean regions. It is worth noting that Canada leads with Personal Lines claims.
TOTAL INDEMNITY DOLLARS (USD) FROM DATE OF LOSS
Commercial Property $48,932,517,326
Catastrophe $13,033,070,215
Liability $8,473,301,264
Marine & Transportation $2,248,656,255
Residential Property $1,646,502,730
WC/Employer’s Liability/Med Mgmt $631,702,797
Motor & Auto $372,505,993
PRODUCT LINES
GRAND TOTAL
$75.4 BILLIONCommercial Property claims represent the highest value of indemnity dollars, followed by Catastrophe. When catastrophes occur in highly insured areas the insured losses are often “total” losses and in many cases these have associated business interruption claims.
5
2013 2014 2015 20172016
500
0
1000
1500
2000
5-YEAR REVIEW:PRODUCT LINES BY CLAIM VOLUME FROM 2013-2017
ON THE INSTRUCTIONS RECEIVED BY CRAWFORD GTS COMMERCIAL PROPERTY AND LIABILITY indemnity dollars follow a similar path in value over the years 2008 to date and so statistically remain in tandem. The proportion remains consistent by region and country when we compare the number of losses and value of commercial to residential property.
In the last five years on Crawford GTS new instructions, commercial property claims have outpaced other product line claim volumes.
6
PROPERTY - COMMERCIAL CATASTROPHELIABILITY
MOTOR & AUTO
PROPERTY - RESIDENTIAL
WC
MARINE & TRANSPORTATION
TOP 5 PERILS
TOP PERILS
BY NUMBER OF ASSIGNMENTS
BY REGION
1,182CANADA ASIA
1,023
CENTRAL EUROPEMIDDLE EASTAFRICA 1,608
UK2,771
LATIN AMERICACARIBBEAN
521
PACIFIC1,624
USA1,392
FIRE FLOODINJURY STORMALL RISKS
GENERAL LIABILITY BREAKDOWN EARTHQUAKE
7
STOR
M1,
954
4,64
1AL
L RI
SKS
1,79
6GE
NERA
L LI
ABIL
ITY
9,95
7FI
RE
1,67
5FL
OOD
CLAIMS BY PERILClaims by perils are classified by the proximate cause of damage which include more than 44 types such as fire and/or explosions, water damage, theft/vandalism etc. Claims on All Risks Policies are classified to an All Risks Peril.
Fire is the most prominent peril across the regions, with the greatest volume of claims concentrated in the UK, followed by the Pacific and Central Europe/Middle East/Africa regions.
8
2013
0
1000
800
600
400
200
2014 2015 2016 2017
ALL RISKS
FIRE AND/OR EXPLOSION
STORMFLOOD
GENERAL LIABILITY CLAIMS
$4.33
$2.90
$3.10$3.62$3.63
Fire and/or Explosions lead the top 5 perils, followed by All Risks.
In the last five years, the top five perils have resulted in over $17 billion in indemnity dollars.
TOP 5 PERILS BY CLAIM VOLUME FROM 2013-2017
5-YEAR REVIEW
INDEMNITY DOLLARSALL PERILS(USD IN BILLIONS)
2013
0
1000
800
600
400
200
2014 2015 2016 2017
ALL RISKS
FIRE AND/OR EXPLOSION
STORMFLOOD
GENERAL LIABILITY CLAIMS
$4.33
$2.90
$3.10$3.62$3.63
9
* Data tracked from date of loss
OUR CLIENT BASEOur client base is diverse. It includes some of the world’s top reinsurers, global and local insurance companies and brokers, as well as self-insured entities.
As of February 2018, Crawford has 3,015 losses recorded in the database and over $8 billion in indemnity dollars for global property and casualty companies and 4,424 records and nearly $18 billion in indemnity dollars for global property and casualty insurance brokers.*
GLOBAL P&C INSURANCE COMPANIES
$8,028,423,1273,015
GLOBAL P&C INSURANCE BROKERS
$17,794,427,8464,424
FOR MOREINFORMATIONCONTACT:
USAH. Terry Hunt Senior Vice President - Head of Global Technical Services Global Technical Services US Crawford & Company675 Placentia Avenue, Suite 350Brea, CA 92821 phone: 714-528-0527 fax: 770-723-8781cell: 213-537-0000email: [email protected]
Geoff B. Piggot Global Head of GTS & Complex Claims Crawford & Company 70 Mark Lane, London, EC3R 7NQPhone: +44 (0) 207 265 4096 Cell: + 44(0) 7387 109924 Email: [email protected]
CanadaPaul C. HancockVice President Global Technical Services, Canada/Toronto Branch ManagerCrawford & Company (Canada) Inc.55 University Avenue, Suite 400, PO Box 36Toronto, ONM5J 2H7phone: 416-957-5043fax: 416-867-1925cell: 416-388-9327email: [email protected]
UK
Latin America
Alister JuppHead of Global Technical Services UKCrawford & Company 70 Mark Lane, London, EC3R 7NQphone: +44 (0) 207 265 4386 cell: +44 (0) 7387 091506 Email: [email protected]
Roberto A. McQuattie Regional Head - Latin AmericaCrawford & Company201 S. Biscayne Blvd., Suite 2856Miami, FL 33131 phone: 305-371-5572 fax: 305-371-5587cell: 786-390-8572email: [email protected]
Australia
Europe
Martin MillerDirector, National Global Technical Services Manager, National Crawford Forensic Accounting Services Manager, Australia, Asia Pacific Brisbane, Level 1 North Tower 527 Gregory Terrace, Fortitude Valley, QLD 4006, Australiaphone: +61 7 3230 4403 fax: +61 7 3230 4411cell: +61 402 021 468 email: [email protected]
Mike Jones President, European Operations Crawford & Company 70 Mark Lane, London, EC3R 7NQphone: +44 (0) 207 265 4345 cell: +44 (0) 7740 564329 Email:[email protected]
Asia
Middle East
Scott Reichelt Director, Global Technical Services AsiaDirector, Crawford Forensic Accounting Services Asia, Singapore, Asia Pacific Crawford & Company 8 Shenton Way, #03-01 AXA Tower, 068811, Singaporephone: +65 6632 8699fax: +65 6632 8040 cell: +65 9733 5702 Email: [email protected]
Brian ClarkExecutive Director - Middle EastCrawford & CompanyAl Masraf Tower, Office 904, Baniyas RoadDubai, United Arab Emirates PO Box 2976, Dubai, United Arab Emirates. phone: +971 (0) 4 223 6370cell: +971 (50) 144 8874Email: [email protected]
GLOBALLARGE LOSS
DATABASE
A GRAPHICINTRODUCTION
TO GTS™
OPERATIONS
CRAWFORD GTS®
WWW.CRAWFORDANDCOMPANY.COM
