SupplyChainBrain Think Tank blog post; Jeff Lang (SCB Contributor); global supply chains face pressure from all directions — and insurance has long served as the default tool for managing multiple types of risk — but it is no longer sufficient. Rising raw material costs; inflation and new tariffs; contribute to higher premiums; stricter underwriting standards and tighter policy terms. In this environment; companies viewed as higher risk may encounter limited coverage options or unaffordable conditions. For this reason; businesses can no longer rely on insurance as their sole line of defense. Increasingly; the most resilient organizations are not those with the most coverage — but those with the best risk management program. This means taking proactive steps to reduce risk exposure; protect operations and strengthen insurability standing in the eyes of underwriters. This mindset is particularly critical for companies whose supply chains span multiple regions; rely on time-sensitive delivery models or depend on third-party partners for logistics; warehousing or raw materials. A single breakdown in that network can trigger ripple effects in production schedules; customer deliveries and revenue. Efficiency strategies — lean manufacturing and just-in-time inventory — have long helped manufacturers reduce storage costs; free up cash and keep operations tightly focused. But when disruption is the baseline; those same strategies can quickly become vulnerabilities. Minimal buffer inventory and largely streamlined supplier networks allow even short delays or material shortages to halt production. True resilience is built with structural flexibility.
From a supply chain perspective; the global commercial insurance sector; Munich Re (Munich Germany; Joachim Wenning CEO); Swiss Re (Zurich Switzerland; Andreas Berger CEO); Hannover Re (Hannover Germany); SCOR (Paris France); Berkshire Hathaway Reinsurance (Warren Buffett Chairman); Lloyd's of London; AIG (Peter Zaffino CEO); Chubb (Evan Greenberg CEO); Zurich Insurance Group (Mario Greco CEO); AXA (Thomas Buberl CEO); Allianz (Oliver Bäte CEO); Liberty Mutual; Travelers; Marsh McLennan; Aon; Willis Towers Watson; Gallagher; Lockton; Hub International; are among the main providers. Supply chain-specific insurance products include: (1) property and business interruption (BI); (2) contingent business interruption (CBI); (3) marine cargo; (4) trade credit; (5) political risk; (6) cyber liability; (7) product recall; (8) supply chain insurance (emerging category); (9) parametric insurance; as the main categories. Munich Re Supply Chain Insurance; Swiss Re Corporate Solutions; Marsh Sentrisk; FM Global; AXA XL; are among the main sector-specific solution providers.
From a supply chain perspective; the risk management ecosystem includes: (1) Enterprise Risk Management (ERM); COSO ERM Framework; ISO 31000; as the main frameworks; (2) Supply Chain Risk Management (SCRM); NIST SP 800-161; CMMC (Cybersecurity Maturity Model Certification); as the main standards; (3) third-party risk management (TPRM); OneTrust; ProcessUnity; Aravo; Prevalent; as the main providers; (4) supplier risk monitoring; Resilinc; Everstream Analytics; Interos; Riskmethods (Sphera); Achilles; Avetta; EcoVadis; are among the main providers; (5) geopolitical risk intelligence; Eurasia Group; Kroll; Control Risks; Marsh Political Risk; are the main advisors; (6) cyber risk; BitSight; SecurityScorecard; RiskRecon; are the main rating providers; (7) climate risk; Jupiter Intelligence; Climavision; One Concern; Munich Re Climate Risk; are the main modelers; (8) parametric insurance; Swiss Re; Munich Re; FloodFlash; Skyline Partners; are the main providers. The Trump 2.0 tariff regime; combined with NATCAT (natural catastrophe) and cyber risk — creates an insurability crisis — the coverage challenges that Lang identifies are structurally endemic globally.
From a supply chain perspective; building resilience includes: (1) multi-sourcing and dual-sourcing strategies; (2) nearshoring and friend-shoring; (3) buffer inventory and strategic stockpiling; (4) supplier diversification; (5) redundant logistics routes; (6) inventory positioning; (7) postponement strategy; (8) vertical integration; (9) contract manufacturing options; (10) visibility platform (FourKites; project44; Shippeo; Tive); (11) control tower (Blue Yonder; Kinaxis; o9); (12) digital twin and scenario modeling; (13) tier-N supplier mapping; (14) bill of materials transparency; (15) business continuity plan (BCP); (16) disaster recovery plan (DRP); as the main building blocks. ISO 22301 (business continuity management); ISO 28000 (supply chain security management); are the main international standards. Sector-specific requirements — FDA (U.S. Food and Drug Administration) DSCSA (Drug Supply Chain Security Act); FSMA (Food Safety Modernization Act); EUDR (EU Deforestation Regulation); CSRD (Corporate Sustainability Reporting Directive); UFLPA (Uyghur Forced Labor Prevention Act); are the main regulatory frameworks. In conclusion; the perspective that Lang identifies — "not viewing insurance as the sole defense" — reflects the global evolution in risk management shifting structurally toward active design; with structural flexibility emerging as the main strategic lever for supply chain managers.
Key Points:
1. Jeff Lang (SCB Contributor); emphasizes that insurance alone is insufficient.
2. Rising raw materials; inflation; tariffs; lead to higher premiums.
3. The most resilient companies are those with the best risk management program.
4. Lean and JIT; can become vulnerabilities during disruptions.
5. Structural flexibility is the foundation of true resilience.
