Supply chain risk is one of the biggest opportunities for the Asia Pacific region, according to a key business leader.
With Asia Pacific playing a more important role on the global stage, Stefano Tranquillo, senior vice president, Asia Pacific division manager for FM Global, said that complex supply chains are more important now than ever.
“We live in a very global and interconnect world today so a lot of those claims that we insure in North America or Europe have complex supply chains,” tranquillo told Insurance Business.
“Those supply chains are reaching increasingly into Asia and questions are being asked about the robustness and resilience of those supply chains.
“A lot of those suppliers are beginning to talk to us because they themselves realise they need to be more resilient and robust.”
Tranquillo noted that one of the biggest challenges for the region could impact supply chain risk as he highlighted natural disasters as “a big issue.”
With Taiwan and China dealing with the aftermath of a severe typhoon, along with other major losses already taking place this year, Tranquillo said that whilst natural catastrophe can have a huge impact, loss prevention techniques can help soften the blow.
“We feel that whilst you might not be able to control a natural hazard there are a lot of things you can do to mitigate your exposures to natural hazards,” Tranquillo said.
“Part of it is raising awareness, making organisations understand the exposures and how those exposures could affect them and affect their bottom line. Another part of it is coming up with solutions to help mitigate against those exposures or eliminate them where possible.”
FM Global recently announced the building of a major new loss prevention hub in Singapore and Tranquillo said the decision to build the facility in the region highlights the importance FM Global puts on Asia Pacific.
The facility will help all businesses and Government boost their loss prevention efforts and Tranquillo said that mitigation will play an increasingly important role as the industry continues its growth.
“We believe that insurance alone is not enough, you do need to have other mechanisms in place to deal with things such as reputation, market share,” Tranuqillo continued.
“There are a lot of activities that get redirected when you have a major loss so instead of focusing on your business you have to focus on recoveries. We think that there is a lot that you can do to help prevent these losses from happening in the first place. To ensure that, you just need to have a minor disruption as opposed to a major disaster on your hands.”
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