Supply chain reassessment on the rise
A new geography of risk
Companies are realising they need to redraw their supply chains. This can mean moving operations to countries with more stable political climates and dependable trade relationships. The goal: reduce exposure to disruption caused by geopolitical tensions, economic instability, and labour strikes in any one country.
As the geography of risk shifts, so does the playbook. Those who embrace innovative strategies, harness expert insights and steer thoughtfully through an increasingly interconnected world will be better positioned to manage volatility and seize new opportunities.
“Economic downturns often trigger investor lawsuits, fiduciary breaches, professional negligence and employment claims. To navigate uncertainty, businesses should adopt robust risk strategies and collaborate with insurers to map emerging risks and apply lessons from past crises.
At the same time, shifting tariffs and trade disruptions are reshaping global supply chains – driving up cargo values and prompting companies to explore new markets and diversify manufacturing to offset declining demand. Increased material costs have the potential to impact claims values where replacement costs are an element of the alleged damages.”
Beth Diamond
Chief Claims and Litigation Officer
The supply chain tightrope: Balancing risk, resilience and reward
The established ways of operating – relying heavily on international suppliers – suddenly came with a price. Literally. Onshoring and tariffs tend to drive up production costs, squeeze profit margins, and leave companies with a tough choice: absorb the hit or pass it on to consumers through price hikes.
From shockwaves to springboards: A growth story
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When the pandemic hit, fragile operations buckled under pressure, agile ones adapted. And for the agile firms, it was flexibility and innovation in business operations that turned disruption into opportunity.
That kind of shift is the product of deliberate planning and a willingness to rethink how things are done. Going forward, businesses that treat resilience as a foundation – not a reaction to geopolitical shock – will likely adjust with ease rather than scramble with desperation.
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"Supply chains must be adaptable. The rerouting of vessels around southern Africa due to the Red Sea attacks has added considerable time to journeys and is an example of the impact of geopolitical events on the efficiency of supply chains. Marine freight has however continued to show its resilience through adaptability of routes and investment in port infrastructure."
Sam Kimber
Product Leader - War & Marine
The ground game of global trade
The stakes are rising on the tech frontier. AI, semiconductors, quantum computing are operating on innovation battlegrounds akin to the space race. Nations hosting the world’s most innovative tech firms are gaining not just economic clout, but political muscle.
The US-China trade tensions meanwhile have laid bare the vulnerabilities of global interdependence.
Both powers are now fortifying their domestic capabilities, seeking new allies, and preparing for a future where control over rare earths and cutting-edge tech could tip the balance of global influence.
Meanwhile, Russia’s conflict in Ukraine has underscored the strategic importance of critical minerals used in tech, with Ukraine’s lithium reserves emerging as a potential flashpoint in the race for resource dominance.
The anatomy of growth through resilience
The process of reconfiguring operations often reveals hidden potential: new efficiencies, untapped markets, smarter ways of working. But awareness alone isn’t enough. Early warning systems can shield businesses from crisis. These systems track key indicators – economic shifts, supply chain tremors, reputational risks – and allow for swift, informed responses. Insurance, meanwhile, acts as a vital safety net, ensuring that even when the unexpected strikes, long-term goals can remain intact.
In the end, resilience isn’t just a strategy. It’s the story of how businesses learn to bend without breaking and grow stronger with every test.
Tolerance for risk over time
"Companies and their executives are definitely more risk aware, however it’s unclear whether they are more risk-adverse yet. It’s easy to get complacent, get used to the constant upheaval, and therefore not prepare your business effectively."
Christian Tolle
Head of Political, Accident & Contingency