Call Your Broker: Have You Purchased Supply Risk Insurance Yet?
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If you ever considered the option of purchasing a true insurance product to mitigate against supply risk, now might be the right time. Marsh recently announced a formalized supply risk product to help companies insure against supply disruptions. According to Business Insurance, “the program is designed to protect companies that rely on critical supplies of raw goods and materials, and will cover companies for disruption caused by a wide range of perils, including strikes, political risks or pandemics.” Marsh has branded the product — which it developed with a division of AIG — Global Supply Secure. It would appear that there’s some real science behind the underwriting process as well. According to the announcement, “when buying the coverage, companies will be given a supply-chain risk assessment from Marsh’s risk consulting practice.”
You can learn more about Marsh’s supply risk consulting and research group here. Relative to other insurance brokers, Marsh appears to be taking a leading role in not only selling supply risk insurance products, but also analyzing and consulting on the space as well. Less than a year ago, Marsh acquired ChainLink, an analyst and advisory firm led by AMR alumnus Ann Grackin. They’ve also grown their practice organically through rounding out the group with expertise from both inside Marsh and from outside hires. Look for further analysis of Marsh’s services in this area on Spend Matters in the coming months.
– Jason Busch