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Navigating Supply Chain Risks and Insurability

The following article was published by WTW

  1. Cybersecurity and the vulnerability of supplier contracts have become a critical concern and central component of enterprise risk management.
  2. Digital transformation and data availability are becoming top priorities, with an emphasis on aligning supply chain goals with broader organizational objectives.
  3. Companies are increasingly focusing on executive oversight and specialized risk management teams. Although gaps remain in comprehensive risk management strategies, this presents opportunities for future development.

Simon Sølvsten, Head of Organizational Resilience Research at the WTW Research Network, states: “Supply chains are the backbone of any organizational ecosystem. However, their complex design, international reach, and broad exposure to risk present significant challenges for organizations in maintaining the necessary understanding and oversight of inherent risks crucial for building efficient organizational resilience, especially as they strive to keep pace with the evolving risk landscape while avoiding the bias of overemphasizing the likelihood of recent events reoccurring.”

Hugo Wegbrans, Head of Corporate Risk and Broking Europe, says: “The complexity of modern supply chains presents a unique challenge for the insurance industry, where risks must be thoroughly understood and accurately quantified to enable effective diversification and appropriate premium pricing. Proper risk quantification is essential to ensure that premiums reflect actual exposures, enhancing acceptable risk profiling, competitiveness, and the overall appeal of the market.”

The complete WTW Global Supply Chain Risk Review 2025 can be downloaded here.

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

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