Increasingly complex supply chains, together with greater outsourcing activities have resulted in the increased likelihood that organisations will have their routine efficient operations seriously disrupted. These disruptions can result from a number of different events outside the control of the organisation. Management of supply chains and the role of insurance in reducing the cost of supply chain disruption are high-profile issues.
Airmic members have become aware of the development of specialist supply chain insurance offering insurance coverage when disruption of normal operations takes place for reasons other than traditionally insured perils. At the same time as these new products are being developed, a number of events have occurred that have highlighted the weaknesses of existing contingent business interruption insurance coverages. It is against this background that Airmic decided to investigate the state of the supply chain insurance market.