The supply chain disappointment – Insurance Insight


As supply chain risks rise up the agenda for businesses, there is clearly an opportunity for insurers to step in with up-to-the-minute solutions that respond to new challenges. Dequae believes while the risks have changed, “the insurance solutions have not really adapted to the changes in the supply chains”. She points, in particular, to the need for innovation when it comes to “more coverage and capacity”, as well as broader conditions and “coverage at acceptable prices”.

via The supply chain disappointment – Insurance Insight.

I have become used to some of my more “critical” comments not making it past moderators who are overly-sensitive to the potential for political repercussions.  So here it is:

supply_chain_diagramAnyone who has given the subject matter some thought knows, broadly, what the problems are. Some even know of available solutions. But NONE have acted to seize the competitive advantage that “embedding” solutions as part of their proposition! Read more of this post

Survey confirms concerns with supply chain insurance | FERMA


Future supply chainThis is a topic that has occupied much of my thinking (and writing) in recent years and I am still not convinced that the scale and nature of the risks are fully understood. NOW must be the time for another smart insurer (FM Global have already acted) to respond to their customers’ stated needs!

Global logistics (and reverse logistics) have changed dramatically in the last decade and further changes with considerable insurance implications are predicted for the next 5 years. THE opportunity exists NOW, to address a major and growing problem for fragile global business networks in these uncertain times and in the, hopefully, less volatile times ahead.

How???

By embedding Ontonix "Complexity & Resilience risk technology" within Supply Chain solutions, that:

– extends the risk horizon into the Corporate ecosystem by analysing the structure in information within system (network) data

– enables rapid and regular measurement of the "health" of the system

– identifies areas of risk at source

enables the business owners to become “Risk Leaders”: measure; map; mitigate; manage; monitor, system complexity and resilience to:

Read more of this post

FM Global "steal" the initiative whilst others dither – Insurance Insight


It is very rare to read about meaningful innovation, from an insurer, that is about anticipating and responding to policyholder needs but that is exactly what FM Global appear to have done. Well done to FMG and I sincerely hope that they reap the reward of competitive advantage, that such a rare development merits. BUT I do have my concerns.

Whilst it is not for me to question if they know what they are doing…as far as offering protection and reassurance to their customers they undoubtedly do…I wonder about the timing. Perhaps they have overcome concerns about the current turbulence in the global economy OR have decided to pursue a bold strategy right out of the Warren Buffett handbook: “be greedy when others are fearful and fearful when others are greedy”, so plan to be perfectly placed to capitalise upon the lessons that must be learnt following another credit crunch – i.e. the realisation that price is only one metric and that risk management does not = resilience management! Read more of this post