Insurance is not the solution to supply chain risks
Insurance is not the solution to supply chain risks, but it should provide an essential safety net, Paul Hopkin, AIRMIC’S technical director, told a conference on the subject of supply chain risks organised in March by Icon Events in Barcelona. More work was needed to develop coverage for non-damage business interruption losses, he said, for example in cases where goods simply do not arrive because they have failed to get through the port.
Hopkin argues that, without continuing research and development from insurers, AIRMIC members could find a widening gap between the products that the insurance market offers and the exposures created as their business practices evolve.
