The insurance industry is no different to any other when it comes to the risks of supply chain failure. In addition to the legal and regulatory responsibilities facing the industry, the COVID-19 pandemic can significantly increase incidents of businesses failing or being unable to meet their obligations – bringing potentially critical consequences on their trading partners.
We looked at the some of the key threats to insurance supply and distribution chains and pulled together 6 risks that are most commonly present when things go wrong:
- Increasing complexity of supply chains, meaning companies were often unaware of who their suppliers were subcontracting to and/or what their distribution was.
- Over dependence on suppliers and customers, increasing overall vulnerability.
- Cost pressures, which could lead to compromise on quality and ethics
- Offshoring and outsourcing, making it increasingly difficult for firms to monitor supply chains adequately
- Geographic clustering, making supply chains vulnerable to a localised disaster
- Modern communications, which can rapidly damage reputations
It is true the resilience of insurance businesses has been tested many times before. It is also true that the experiences of the past can offer little insight into what the next few weeks hold. We truly are navigating unchartered waters.
At REG our people and technology remain available and able to provide the very latest data and tools empowering our customers to manage the rapidly changing risks in their supply and distribution chains.
Through monitoring credit risks, and the behaviours of owners, directors and officers we’re enabling risk-based decisions to be made quickly and accurately, encouraging business flows rather than restricting them.
In the past month, REG has issued nearly 30,000 key alerts and notifications to our expanding clientele, permitting action to be taken by increasingly efficient compliance and procurement teams, many if not most of whom are now working remotely.
Helping businesses protect each other is just one way we can help in an industry which, whilst dedicated and resolute, faces and unprecedented challenge.
The REG Team
We are working at full capacity and are fully staffed – existing customers should contact their account manager directly.
We can also be contacted by telephone on 0203 946 2880 or via this page online.