The increasingly global and complex food supply chain, worth more than $8 trillion of GDP, is exposed to a number of risks, which insurers could offer solutions for, according to a new report published by Lloyd’s today.
The report analyses the risks and opportunities for insurers in the global food supply chain, and identifies current gaps in insurance cover that insurers could fill to generate new business.
The study found that different parts of the food supply chain have different risk transfer needs, which insurers need to adapt to. For example, food retailers primarily look for insurance to cover their physical infrastructure, business interruption, liability and product recall events. Due to the large number of suppliers that retailers use, their brand profile and their consumer exposure, their risk profiles are different to those of upstream businesses in the supply chain.
Opportunities to develop new business opportunities include contingent business interruption, protection from class action and cyber insurance. The project also highlights the value of parametric insurance for agricultural producers.
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