Improving supply chain resilience against global disruption
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Pandemic-related disruption has stressed global supply chains (GSCs) this year and companies are turning to insurance to mitigate the risks.
- The COVID-19 crisis has highlighted supply chain risk management and resilience for global companies.
- GSCs are exposed to risks including pandemics, trade tensions and natural catastrophes; insurance can transfer these risks.
- Insurance solutions provide financial relief from GSC risks such as damage to external parties' property, disruptions and delays, or pandemics and political risks.
- Parametric covers designed to correlate with the risk exposures can overcome difficulties in proving the complex causal chain of a loss.
- Digital technologies can enable companies and insurers to better identify, assess and mitigate risks, as well as expand their insurability.
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