Supply Chain Lessons


One of the most significant lessons that clients can draw from recent catastrophes is the need to quantify and understand their supply chain risk.


“We continue to have a very strong and voracious appetite to assume risk but we have to better quantify it.”


Erik Nikodem, Lexington Insurance


The insurance industry has the capacity to address supply chain risk, but the Thailand floods and Japan earthquake and tsunami provided information that will help better understand this risk. One of those lessons is that insurers need to look beyond direct suppliers to determine vendors’ sources.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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