Kathmandu. Time Trade disruptions, supply chain disruptions and prolonged recovery are becoming bigger causes of insurance losses than the initial physical damage from disasters in the Asia-Pacific region. <\/p>\n
According to the Tokyo Marine Killen Group, 20 years ago, large insurance claims were mainly related to physical damage repairs. The biggest challenge today is resuming operations. “How quickly the business can recover and this ultimately determines the total cost of losses,” Sugendran Ramasamy, the group’s head of claims for Asia, said in an October report. <\/p>\n
According to the report, even long after physical damage has been repaired, trade disruptions, labor shortages and supply chain delays can cause significant damage. “Businesses are now increasingly reliant on interconnected technological systems and supply chains,” the report said. This creates risks. That cannot be detected unless there is a major disruption. \u2019<\/p>\n
Japanese insurers say that frequent disasters, concentrated industries and interconnected supply chains are further complicating the task of assessing disaster-related risks and total losses. “The 2011 floods in Thailand showed how local disasters can affect industries worldwide,” the report said. “Especially when major manufacturers and suppliers are concentrated in one place.” \u2019<\/p>\n
This trend is not limited to natural disasters. The report cites crowd strike outages in 2024 as an example of how disruptions can spread across many industries and countries without physical damage. <\/p>\n
According to Alinza SE’s ‘2025 Risk Barometer’ report, business disruptions are considered to be the biggest business risks in the Asia-Pacific region. “Trade disruptions can account for up to 70 per cent of total disaster damage,” the report said, adding that supply chain disruptions cost businesses an average of $184 million annually. \u2019<\/p>\n
The group recommends that insurance companies and businesses not only limit the physical damage but also evaluate how quickly recovery can be made after an outage. \u2013 Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Time Trade disruptions, supply chain disruptions and prolonged recovery are becoming bigger causes of insurance losses than the initial physical damage from disasters in the Asia-Pacific region. According to the Tokyo Marine Killen Group, 20 years ago, large insurance claims were mainly related to physical damage repairs. The biggest challenge today is resuming operations. […]<\/p>\n","protected":false},"author":16,"featured_media":229621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-322100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=322100"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322100\/revisions"}],"predecessor-version":[{"id":322101,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/322100\/revisions\/322101"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/229621"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=322100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=322100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=322100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}