Lloyd’s has published a new report – On the move – which explores the biggest threats to supply chains in transportation and logistics – an industry which underpins USD 89 billion of global trade and has a market value of USD 9.7 trillion.
The supply chain disruption experienced during the COVID-19 pandemic and more recently in relation to ongoing geopolitical conflict, has highlighted the fragility of supply chains to global impacts, and the importance of building resilience into risk management solutions.
The report, delivered in collaboration with WTW found that whilst over 90% of transport and logistics companies surveyed agree that insurance for supply chain risk is critical, 77% said a lack of access to supply chain insurance solutions, and a lack of data to understand these risks was among the greatest challenges to their businesses.
- Lloyd’s Futureset’s ‘On the move: Rethinking transport and logistics supply chains’ – highlights supply chain challenges and insurance opportunities for the $9.7trn transport and logistics industry
- The report examines the sector’s supply chain risk landscape and outlines steps that (re)insurers and transportation and logistics companies can take together to build long term resilience against supply chain risk, supporting an industry which underpins $89trn of global trade
- The analysis is based on surveys and interviews with over 175 global practitioners operating in the transportation and logistics and insurance sector, and aims to spark product innovation through outlining the opportunities to develop new supply chain solutions
Transportation and logistics companies have heavily invested in risk management practices and integrated technology solutions.
This growing focus represents a significant opportunity for increased collaboration and innovation between transportation and logistics companies and insurers to strengthen recovery capabilities, improve resilience and use new data sources to improve the visibility of supply chain related exposures.
Transportation and logistics insurance approach
What are the three greatest challenges to addressing your risks over the next 3 to 5 years?
“Through this report series we hope to promote greater collaboration between customers and insurers to build better risk resilience across sectors and minimize the impact of supply chain threats that hold up global trade”, said Rebekah Clement, Corporate Affairs Director, Lloyd’s.
This report offers real insight into the supply chain challenges facing the industry in today’s uncertain economic and geopolitical climate
“Transportation and logistics companies are taking steps to mitigate these challenges – whether that’s sharing assets or collaborating with technology companies – and further opportunities to collaborate must be identified to reduce risk, maximize efficiencies and minimize disruption within the supply chain. For the perceived insurance gaps, they are looking to the insurance industry to partner with and resolve. There are clear opportunities available for insurers, transport and logistics operators and brokers to enhance understanding of changing business models, and partner on insurance and risk management solutions that meet the sector’s needs”, said Anthony Monaghan, Transportation Leader GB, WTW.
by Yana Keller