Sustainability, technology and geopolitical challenges top risks for transport industry

A new report from Lloyd’s, the global insurance and reinsurance marketplace, in collaboration with WTW, delves into the challenges and opportunities facing the global transport and logistics industry.

Titled On the move: Rethinking transport and logistics supply chains, the report underscores the risks and insurance prospects within a $9.7 trillion industry critical to facilitating $89 trillion of global trade.

In the wake of supply chain disruptions during the COVID-19 pandemic and ongoing geopolitical conflicts, the report underscores the vulnerability of global supply chains to external impacts.

With the transport and logistics industry underpinning $89 trillion of global trade, building resilience into risk management solutions has become imperative.

The report, based on surveys and interviews with over 175 global practitioners in transportation, logistics, and insurance, identifies key challenges.

While over 90% of surveyed companies recognise the importance of insurance for supply chain risk, 77% express concerns about the lack of access to supply chain insurance solutions and insufficient data to understand these risks.

Transportation and logistics companies have made substantial investments in risk management practices and integrated technology solutions.

This trend provides a significant opportunity for collaboration and innovation between these companies and insurers. The goal is to strengthen recovery capabilities, improve resilience, and leverage new data sources to enhance visibility into supply chain-related exposures.

Rebekah Clement, Corporate Affairs Director at Lloyd’s, states, “We will continue to work with our market and global partners to provide innovative, sustainable insurance solutions that address the key challenges faced by our customers.”

She emphasises the importance of collaboration to build better risk resilience across sectors and minimise the impact of supply chain threats on global trade.

Anthony Monaghan, Transportation Leader GB at WTW, highlights the industry’s efforts to mitigate challenges, such as asset sharing and collaboration with technology companies.

He points out clear opportunities for insurers, transport and logistics operators, and brokers to enhance their understanding of changing business models. Collaborative efforts on insurance and risk management solutions are essential to meet the evolving needs of the sector.

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