Large businesses are going insolvent at a rate of one every 18 hours globally, according to a report from Allianz Research, as the insurer warned that domino effects through supplier networks are heightening non-payment risks across sectors.
A record 147 cases were recorded in Q4 2025, bringing the annual total to 475 – the largest quarterly and annual figure since Allianz began monitoring in 2015. The combined turnover of insolvent major companies increased by 31% year-on-year in Q4, reaching €66 billion.
Global business insolvencies rose 6% in 2025, with Western Europe contributing at the same rate. Most advanced economies now exceed pre-pandemic insolvency levels, while five of nine Asian markets posted double-digit increases.
Maxime Lemerle (pictured above), lead analyst for insolvency research at Allianz Trade, said the trend was without parallel in recent history.
"Five consecutive years of global insolvency increases is unprecedented since the financial crisis," Lemerle said. "This outlook is driven by a few key countries, primarily the US, China and Germany, which account for a major portion of our global insolvency index."
In the UK, Allianz Trade estimates 27,650 businesses will become insolvent in 2025, just below the 12-year record of 28,100 cases in 2024. Insolvencies are forecast to dip to 25,900 in 2026, though this would still leave the UK around 31% above pre-pandemic levels.
The report warned that large insolvencies heighten the risk of cascading failures due to extensive supplier networks.
According to Allianz Trade, as mitigation strategies wear thin and secondary effects from trade tensions take hold, corporates face growing exposure to tight refinancing conditions, geopolitical disruption and sector-specific weaknesses – particularly in construction and automotive.
Lemerle also flagged a potential shock tied to the AI boom, warning that a correction similar to the dotcom bubble could lead to an additional 4,500 insolvent companies in the US, 4,000 in Germany, 1,000 in France and 1,100 in the UK.
Services, construction and retail accounted for 44% of total insolvencies globally. Industrial sectors showed sharper vulnerabilities in relative terms, with chemicals, machinery and automotive particularly affected in Europe – recording increases of between 157% and 800% compared to 2024.
Allianz expects insolvencies to rise by 3% globally in 2026 before a limited decline of 1% in 2027.
