Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

Insurers Act to Match the Increasing Risk of Disruption to the World’s Supply Chains

Posted February 12, 2014

Major companies with extended global supply chains are increasingly looking to insure against disruption across those supply chains as the levels of risk escalate.
Agility Risk Report-2014
The Agility Emerging Markets index, released last month, showed an interesting divergence in the type of risk shippers see in different markets. For many multinationals, Asia remains the region with the highest proportion of attractive emerging markets, but they come with a high perceived risk of natural disasters, according to the research, followed by the threat of economic shocks, poor infrastructure and corruption. [...]

Hassan Karim, global senior underwriter for supply chain insurance at Zurich, told The Loadstar that in 2013 enquiries for supply chain insurance cover increased 300% over the year before, as shippers began to realise that a product that addressed risk had been developed.

“For years, customers had been told that they couldn’t have this type of insurance, because of all the inherent unknowns – as an underwriter, I need to know what supply chains risk looks like, and as there has been more outsourcing, more risk has been created.”

Click here to read the complete article.

Source: Gavin van Marle | The Loadstar

The Loadstar