Both brokers and insurers have work to do with their clients in the light of new research warning that UK businesses are being hampered by their homeland’s infrastructure.
The ability of UK firms to compete internationally is being “seriously compromised” by the country’s poor infrastructure, including road, rail and air transport, according to a new survey published this week by
QBE Business Insurance.
The insurer’s Supply Chain Risk Index
ranked the UK 12th out of 15 countries overall – putting it in the bottom third – a result which was partially due to poor performance in the political and infrastructure pillars.
Recent terrorist activity coupled with ongoing political uncertainty dragged down the country’s political pillar score, and the UK’s poor performance in the infrastructure pillar comes as a result of poor quality road and air transport, the research said.
“The results show us that supply chain disruption is a very real threat to businesses and it is incumbent on both brokers and insurers to work with customers to make sure the extent of their exposure is understood and the right level of cover is made available to them,” Matthew Crane, executive director of market management, QBE European Operations, told Insurance Business.
“Supply chains are very complex and many businesses struggle to understand their own,” Crane went on to say. “Insurers have the skills and knowledge to help businesses understand where their biggest risks lie and to develop and implement plans to minimise the chances of disruption.”
A report released last month by the insurer, Understanding and Protecting your Supply Chain, also looked at business continuity planning and how to respond post-event. It found that a holistic approach, involving all parties, was the best course of action.
The report described the best reaction to a loss as one “where all parties, management, broker, insurer and loss adjuster genuinely work as a team on behalf of that business.”
QBE published the report in order to help businesses get to grips with their supply chain exposures, Crane said, “so they can ensure they have the right risk transfer programmes in place.”
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