How can insurers protect against supply chain risk?

Insurers can mitigate supply chain risks by employing several strategies. Firstly, they can encourage clients to conduct thorough risk assessments and implement robust risk management practices. Insurers may offer specialized policies covering supply chain disruptions, including coverage for business interruption and contingent business interruption. Additionally, insurers can leverage data analytics to assess and monitor supply chain vulnerabilities, enabling proactive risk mitigation. Collaborating with clients to develop contingency plans and offering incentives for adopting resilient supply chain practices can further enhance protection.

Analisar cuidadosamente a exposição e implementar estratégias sólidas é essencial para as seguradoras se resguardarem contra os riscos inerentes à cadeia de suprimentos, garantindo assim uma gestão eficaz e resiliente diante de desafios potenciais.

Insurers can protect against supply chain risks by: 1. Diversification: Diversify suppliers to reduce dependence on a single source, mitigating the impact of disruptions. 2. Conduct thorough risk assessments to identify vulnerabilities within the supply chain and prioritize mitigation strategies. 3. Monitoring and Visibility: Implement real-time monitoring tools to track the entire supply chain, enhancing visibility and enabling quick response to potential disruptions. 4. Insurance Coverage: Purchase business interruption and supply chain insurance to transfer financial risks associated with disruptions to the insurer. Include contractual clauses that define responsibilities, penalties, and contingency plans in case

There is a need for an expert, data-driven dialogue between the transportation and logistics industries technical stakeholders and the insurance market to ensure more effective knowledge transfer that can support innovation and transportation and logistics companies’ desires to purchase solutions that better meet their needs. Once insurance companies have better understanding of the risk, they will be able to provide better policies, premium, coverages and limits for their clients.

From my perspective more holistic or individual approach regarding the coverage is better. By creating a policy and coverage based on the specific needs and preferences of the clients, both the insurance company and the client will be in a better position once the damage occurs.

Oferecer cobertura inteligente e abrangente é fundamental para que as seguradoras se protejam contra os desafios inerentes à cadeia de suprimentos, garantindo assim segurança e estabilidade em um ambiente dinâmico de riscos empresariais.

Lack of access to insurance and risk transfer solutions, lack of data, knowledge, and understanding of these risks and lack of internal risk management tools and insight are the three greatest challenges when addressing risks that supply chain companies face. Therefore, assisting supply chain companies regarding these challenges would add additional value to those companies. So, insurance companies should use the resources at their disposal to track, monitor, and surface additional data that will allow them to respond to delays and interruptions.

Further development of solutions and innovations in the area of supply chain insurance is welcomed and needed. This can be achieved by raising awareness of existing products and considering new products in the 'gaps' highlighted by transportation and logistics companies. This lead us to increase collaboration between insurance and supply chain companies to obtain detailed exposure data and develop capabilities to better quantify supply chain risk. Insurance companies should continue the development of proactive risk management solutions and Support government's supply chain resilience efforts through public-private partnerships and knowledge sharing.

Desenvolver soluções inovadoras é crucial para capacitar as seguradoras a se protegerem de maneira eficaz contra os riscos da cadeia de suprimentos, promovendo assim uma gestão proativa e adaptativa diante das complexidades do cenário empresarial.

Trade conflicts, raw material shortages, climate change, stricter environmental regulations, growing economic uncertainties and policy changes, as well as industrial unrest. These risks are causing unexpected delays and shining a spotlight on the vulnerabilities of global supply chains. All of this should be regularly monitored by insurers to adjust and improve their products and services. Add to this the rising cost of essential items like raw materials, energy, and labor, as well as the soaring cost of freight prices.