This is how the claims year looked for companies: fewer losses than before, but they were larger
Freezing temperatures and damage related to electricity caused especially many losses to companies in Finland in 2024. An expert describes the new risks for which companies should prepare.
The number of property and operational losses reported to Pohjola Insurance by companies has decreased steadily in recent years – almost 27% since 2020.
The total number of losses also decreased in 2024, but there was significant growth in major losses (more than 300,000 euros) compared to the previous year. The number of major losses to companies' property increased by 60% last year, and claims expenditure grew by 74% compared to 2023.
“The increase seems dramatic, but in reality, there were exceptionally few major losses in 2023. Last year was therefore a return to normal in terms of major losses,” says Pohjola Insurance's Property and General Liability Claims Settlement Director Mikko Filppula.
In total, Pohjola Insurance compensated more than 113 million euros of company property losses in 2024. In particular, freezing temperatures at the start of the year caused an exceptional amount of serious piping and water damage, the costs of which were up to hundreds of thousands of euros.
Losses were also caused by natural phenomena, customers' own actions, criminal damage and fires that started in vehicles. The amount of fire damage caused by electrical equipment or installations especially has increased. The number of fire losses related to electricity increased by 16% compared to 2023.
Climate change, a repair backlog and cyber threats will increase companies' risks in the future
A major turning point is not expected in the number of company losses this year. However, the recession and the slow economic growth following it have affected the willingness of companies in Finland to invest in repairs, and new technology and equipment.
“Saving in repair and maintenance work increases risks of loss or damage. In the worst case, saving in the wrong place endangers business continuity,” Filppula warns.
Although the number of property losses suffered by companies has decreased promisingly in recent years, both insurance companies and enterprises should prepare for a changing global situation and new kinds of risks.
In addition to the economy and geopolitics, extreme weather events such as floods and storms are becoming more common with climate change and are already affecting the activities and risks of companies in Finland.
“The impacts of climate change not only concern the future. They are real, and we must prepare for them now. In addition, companies dealing with security of supply especially must also prepare for various cyber threats. It's possible that malware, for example, will be used in the future to cause mechanical damage to machines and equipment. Business continuity planning is key in risk management,” Filppula emphasises.
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