From the curation of raw materials through the delivery of finished products, supply chains are the cornerstone of today’s interconnected economy. Since the establishment of the World Trade Organization in 1995, global trade has grown at an average annual rate of 5%. That consistent 30 year growth trend can in large part be attributed to the effective management of the intricate web of networks that make up the supply chain.
However, today’s supply chain is being put to the ultimate test. Inflation reached record levels around the world over the past year, geopolitical tensions remain volatile on multiple fronts, and consumers continue to demand a seemingly never ending supply of products with the expectation of expedited delivery times.
This perfect storm of circumstances demands proactive risk management from supply chain managers and operators, to mitigate the chances of disruption. The smallest disturbance at the top of the chain has the potential to trigger material ripple effects throughout the economy. The result, as we’ve seen over the past 36 months, can range from the shortage of basic goods to significant and unchecked price fluctuations.
In this report, co-authored by Tokio Marine Innovation Labs (UK) and SOSA, we analyze today’s modern supply chain infrastructure, how current events have impacted the global supply chain, and how managers are increasingly turning to technology and innovation to shore up supply chain resiliency. Importantly, the report will also discuss how insurance providers are uniquely positioned to continue supporting the industry’s tech-driven transition by providing an additional layer of security across the chain.
Interested in learning more about innovation in the insurance industry? Click here to access last year's report, 'The Future of Insurance', to uncover insights into the industry's future, addressing the growing protection gap and adapting to a new generation of consumers through advanced technology.