European risk managers concerned about supply chain insurance market: SurveyReprints
BRUSSELS—A survey of European risk managers indicates concerns about the market for supply chain insurance products.
Only 14% of those participating in an online survey conducted by the Brussels-based Federation of European Risk Management Assns. indicated they feel existing supply chain coverage and capacity are adequate.
Only half of those responding said they are insured against contingent or nondamage business interruption, with 46% saying they felt coverage and capacity are insufficient, 28% indicating conditions are too restrictive and 26% saying they think the cost of coverage is too high.
Of the 153 commercial insurance buyers responding to the survey, 21% said their organization had experienced a material supply chain breach in the past two years, 52% said they are very concerned about the continuity of supply from direct suppliers and 36% said they are somewhat concerned.
The risk managers also expressed concern over suppliers' sources, with 35% saying they are very concerned about those upstream supply chain exposures and 48% saying they are somewhat concerned.
In a statement, FERMA President Jorge Luzzi, group risk management director for Milan-based Pirelli & C. S.p.A.'s worldwide operations, said, “This survey confirms how important supply chain risks have become for many FERMA members, and we will explore during the new year how we can best support them.”