Insurability of Supply Chain Risk

As part of our research on Resilient International Supply Chains, we sought to define and prioritise what a research agenda should be over the next two to three years to improve the application of network analytics and systemic shock to helping with decision support for supply chain risk management, risk transfer and insurance quantification.

Improving the insurance market for supply chain risk

During our work on business networks and supply chain risk, we have heard a wide range of opinions about the insurance market for supply chain disruption risk. This appears to be a nascent market that could potentially benefit from better understanding, tools, data, and methodologies for assessing risk. Academic institutions are one potential source of improved understanding of the risk, so to better guide the application of research resources we are conducting this review to prioritise our research agenda.

The available literature and the practitioner views we have heard, suggest that there are several communities of stakeholder interests in supply chain risk:

  • Corporate risk managers and potential purchasers of supply chain insurance
    Surveys suggest that they would like to obtain more insurance cover to enhance their range of risk management options, but tend to believe that the current insurance products that are offered are poorly matched to their needs.
  • Insurance providers
    Insurance companies recognise the opportunity and believe that they would like a larger market to be created but are concerned that the risk is difficult to quantify, underwrite, diversify, and manage their accumulations to provide the coverage safely.
  • Other risk management professionals
    Intermediaries, brokers, data providers, and consultants have expertise that can influence the market development.

This leading opinion survey and related workshop is attempting to bring all these views together in understanding barriers to the improvement of the market for supply chain insurance, and propose ways forward to overcome them.

Survey of leading opinions

We are soliciting opinions from thought leaders and practitioners on what should be the priorities of research for academics involved in this field, and ultimately to identify where the research activities of the Cambridge Centre for Risk Studies might potentially best contribute, in order to assist risk management professionals, insurers, and other practitioners managing the risk of supply chain disruption in business activities.

Download the survey form (pdf, 205KB)

Top