Cutting Supply Chains: How to Achieve More Reward with Less Risk
Unexpected global changes have shaken supply chains, exposing the fragility of a complex system. While some businesses search for stability, others are harnessing the power of improved data, analytics and AI to strengthen their resilience and opportunities for growth.
Key Takeaways
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Vulnerabilities exposed during the pandemic, compounded by macroeconomic headwinds, magnify the fragility of complex global supply chains.
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Supply chain businesses are contending with a range of evolving threats that require a revised approach to monitoring, forecasting and managing risks.
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Knowing where and how risk impacts the supply chain can help businesses prepare, finance and respond to unplanned events and volatile supplier performance — strengthening supply chain resilience.
Supply chain risk is complex and multifaceted. It can cause material, financial and reputational harm to a business, resulting in lost sales, relationships, revenue and sometimes the future of the business itself. But there’s a raft of processes that can be embedded into an organization to significantly reduce both the cost and impact of disruptions.
Manufacturers continue to compete for limited supplies of key commodities and logistical capacity, leading to long purchase lead times for consumers. Through increased awareness and a need to maintain competitiveness, companies are addressing their long-standing supply issues and re-engineering product specifications. In doing so, they are shaping more resilient and cost-effective supply chains that can be better positioned against future disruptions.
The Growing Complexity of Supply Chains
The interconnected network of manufacturers, transport and storage firms involved in today’s supply chains has become considerably longer and more complex. The intricacies of these structures not only increase the risk of bottlenecks and other disruptions but create ripple effects that agitate global trade flows.
Third-Party Reliance
Many businesses still have their strongest relationships with only a couple of major suppliers. However, they are aware of the need for a broader list of suppliers, alternative markets/customers, and alternative transport and logistics providers. Supply chain leaders are now realizing the value of third and fourth-party risk monitoring to address inherent, emerging and residual challenges in cyber and counterfeiting risks. The use of new technologies including trading systems, planning and analytics capabilities, as well as additional logistics requirements enable increased flexibility and better cost control.
Investing in Technology
Good investments include intelligent automation used to enable efficient, effective and safe operations, including stores, warehouses, manufacturing facilities and even corporate office buildings. Recently we’ve seen accelerated investments in advanced digital enablers, such as cognitive planning and artificial intelligence (AI)-driven predictive analytics. These solutions add greater integrity and visibility, utilizing track-and-trace and blockchain technologies. Organizations are also using advanced technologies to significantly improve visibility across supply chains and boost their response to major disruptions and variables within their domestic, regional and global supply chains.
Commodity Pricing
To overcome the challenges around leveraging commodities, there’s heightened reliance on digital and AI technology. In addition to ensuring a seamless flow of information across the value chain, the use of advanced tools enables more efficient insights-driven decision-making. Consolidation of spend is enabling improved buying, leverage and negotiating power, while also driving reductions in wastage support, environmental, social and governance (ESG) policies and shareholder concerns.
Workforce, Talent and Labor
The onset of new technology has dramatically changed the way supply chains operate globally. Today, consumers are becoming more demanding, driving the transformation of supply chains at a faster rate. Modern operations are focused on technology and innovations which are blurring the lines between the skill sets of blue and white-collared professionals. Supply chain and manufacturing operations now demand a blend of physical and technological skills to sustain and grow both now and in the future.
The changes in demographic are also impacting the overall resource pool. Recruitment of Gen Z, who will soon form a significant part of the workforce, needs to be constantly reassessed to keep the motivations and aspirations of new generations inspired.
These colliding forces are creating global volatility and driving organizations to rapidly reevaluate their operations and strategies around established and clearly-defined risks, as well as newer evolving and emerging threats. This article takes an industry approach to explore the current challenges for food, agribusiness and beverage (FAB), life sciences, renewables, and construction and infrastructure businesses.
Industry Insights
Food, Agribusiness and Beverage
The success of the FAB sector is closely tied to geopolitical events and environmental conditions. Global conflicts, the pandemic and notable rising incidents of extreme weather have highlighted an increase in vulnerabilities. Crop failures, raw material shortages, livestock health, and the safety and security of supply have contributed to rising inflationary pressures, threatening food security globally1 and presenting a unique set of challenges for the industry.
The complex, lean, highly automated, and often just-in-time structure of FAB supply chains means the current labor constraints have become a considerable risk factor for the sector. A lack of workforce stability can severely undermine operational efficiency, compromise quality and heighten pressures on existing workforces. All of this comes at a time when regulation is increasing, stakeholder pressure is intensifying and the transition to net-zero is driving a rise in ESG disclosures.
While the accelerated and evolving use of technology, such as automation, robotics and AI, enables the industry to realize new efficiencies, it also comes with the increased risk of cyber breaches. Even though cyberattacks in the form of ransomware and malware are not new risks, these threats are evolving rapidly. The FAB industry fell victim to more attacks in 2022 than any other manufacturing sector,2 with major manufacturers experiencing significant breaches that caused substantial losses due to ransom payments and operational downtime.
Why Act Now?
Future growth within the FAB sector is being driven by consumers and investors looking for climate and health-friendly solutions through an ESG lens that considers sustainability, ethical sourcing and social value. While many FAB companies committed to transition to net-zero,3 delivering on this commitment will require a fundamental and accelerated shift at the start of the FAB value chain. Although much of the climate disclosure around supply chains is currently voluntary, regulators in certain jurisdictions are proposing disclosure obligations and mandatory reporting.
49.7%
FAB businesses that have suffered a loss due to commodity price risk and scarcity of materials.
Source: Future Global Risks in the Food, Agribusiness and Beverage Sector, Aon, 2021
Life Sciences
The pandemic underscored the life sciences sector's dependence on particular geographical regions for critical materials and products. The fallout of these challenges has highlighted the need for diversification within the industry’s supply chains to mitigate against future geopolitical and pandemic-related risks.
The nature of temperature-sensitive products within the industry also adds complexity to the storing, handling and transporting of products under temperature-controlled conditions. A lack of warehouse space, substandard packaging or temperature control failure, for example, can cause catastrophic consequences for medically dependent patients. This then creates considerable financial and reputational risks for the businesses supplying them.
The complexity and reach of cold chains are growing while regulatory and environmental requirements are becoming increasingly challenging. Modern supply chains already account for 60 percent of greenhouse gas emissions, but cold transport can consume up to 20 percent more fuel because of refrigeration equipment4 — making sustainability an even greater challenge.
Reliability and quality are the cornerstones of supply chain management for the life sciences industry. These securities often trump price in the quest to maintain and grow organizational reputation. However, this has resulted in a heavy reliance on a limited number of key suppliers with skilled staff and specialist facilities. The heavily regulated environment of the sector also creates a prohibitive setting for new entrants, limiting capacity within the industry’s supply chain.
Life sciences companies are also looking to diversify capabilities, maximize revenue streams and simplify the supply chain, which is driving consolidation. Contract development and manufacturing organizations (CDMOs) have traditionally operated in a fragmented space, with the top five companies owning less than a 15 percent share of the market.5 However, the desire to expand development and manufacturing capabilities has resulted in an upswing in M&A activity as larger CDMOs seek out smaller, niche facilities in multiple locations6 — reshaping dynamics within the life sciences supply chain.
Why Act Now?
In a post-pandemic landscape, people have experienced the realities of drug and medical supply shortages. Today, stakeholders demand that lessons are learned to ensure life sciences supply chain players are better prepared to deal with the next global health emergency. Governments and regulators are pushing for increased local production to drive greater efficiency in the future while also supporting the sustainability agenda. For example, the U.S. government aims to produce 25% of active pharmaceutical ingredients for small-molecule drugs within the next five years.7
Leading organizations in the life sciences industry are now stress-testing their current supply chains and applying risk modeling techniques to understand how resilient they are beyond traditionally insured risks. This information is then used to inform the risk mitigation and financing strategies of supply chains that will support new products and build future growth.
$35B
Failures in temperature controls cost the life sciences industry 35 billion USD annually.
Source: Pharma Logistics: Boosting Resilience and Sustainability When Transporting Sensitive Goods, Maersk, 2023
Renewables
Ongoing supply chain challenges in the renewables sectors hamper both new project development and operational assets. These challenges can be even more acute for international projects, where supplies are sourced from a wide range of countries.
A lack of critical plants and equipment, such as suitable installation and maintenance vessels for the offshore industry, has also slowed supply chains, lengthened project schedules and made some developments nonviable. Exposure to supply chain bottlenecks for existing assets can lead to operational downtime, compounding losses that may have occurred during the development phase.
Global political unrest has triggered a renewed urgency to reduce the global dependency on fossil fuels and deliver greater energy security. However, destabilized global economics escalate commodity, labor and freight costs for the sector, contributing to wind and solar power in major global markets increasing by almost 30 percent in 2022.8 Despite a global commitment to accelerate the development of renewable energy infrastructure, supply chain vulnerabilities pose a threat to the pace of development needed to reduce harmful global emissions.
Why Act Now?
Significant growth is predicted in the renewable energy sector,9 with many projects in development concurrently. However, without rapid expansion, supply chain challenges are only anticipated to intensify. Businesses in the renewables sector are well-versed in navigating the international regulatory conditions used to protect domestic industries, ensure national security or promote local economic growth. Yet, as global attitudes towards renewable energy shift, businesses across the sector are traversing a tightening regulatory environment. This adds an additional layer of complexity and risk to supply chain management, requiring continual assessment of the landscape to adjust strategies accordingly.
Corporate clients who operate or develop portfolios of assets can explore the feasibility of spare part pooling to mitigate supply chain risks. Standardization of technology in the sector also helps to reduce the number of suppliers that supply chains depend upon.
$1.2T
The International Energy Agency’s (IEA’s) 2023 clean energy study suggests $1.2 trillion of cumulative investment would be required to bring enough clean technology manufacturing capacity online for renewables supply chains to be on track with the Net Zero Emissions Scenario’s 2030 targets.
Source: Energy Supply Chains Between Transition and Disruption, IEA, 2023
Construction and Infrastructure
While the construction and infrastructure industry has made strides to overcome the shortages, supply bottlenecks and project delays that emerged from the pandemic,10 the sector today finds itself grappling with an evolving set of challenges. Record-breaking levels of dry powder in the investment market have accelerated the demand for construction projects,11 fueling ferocious competition for materials and labor — driving up costs for the sector.
Geopolitical and economic volatility have stoked inflation, accelerating commodity, labor, finance and energy costs. Rising levels of flooding and catastrophic weather leading to supply chain delays have also been on the rise. For example, in the aftermath of Hurricane Ian, damage to ports, railroads and highways caused immediate logistical challenges. However, long after the wreckage, there are still considerable timber and drywall procurement challenges for developers looking to rebuild affected communities.
This intersection of factors has increased the cost of construction, while also making front-end projected project costs more challenging to predict — creating new financial risks for all parties within the construction and infrastructure supply chain.
The stakes can be even higher for businesses managing the supply chains of public entity projects. Stringent regulations, complex procurement processes and the typical scale of these projects can expose contractors to significant financial risks in the event of supply chain delays.
Why Act Now?
The schedule-driven nature of the construction industry means that any delays within the supply chain can result in costly losses for project owners, contractors, subcontractors and suppliers. Against the increasing incidence of severe weather events, rising costs and escalating nature of supply chain disruptions, businesses face considerable threats to their success. These evolving risks within the industry’s supply chain have intensified debates between project owners and contractors around the risk of delay. Financial penalties on projects can be significant and purchase agreements typically reject responsibility for consequential damages to the purchaser. It is therefore highly challenging for a contractor to recover the cost of a delay in the event of extreme weather disrupting the supply chain.
Balancing Efficiency with Resilience
Options available to industries to re-engineer their supply chains in response to an accelerating risk profile are limited. Leaders should take an enterprise approach to supply chain risk, delivering data-driven insights, analytics and advice that balances efficiency and resilience with assessment and monitoring.
Leaders can help build long-term resilience and efficiency by considering the following:
- Operations should be flexible and resilient to adapt and adjust in real-time to changes in trade flows, new regulations, the impact of climate change, trade challenges and geopolitical unrest.
- Technology should be invested in and effectively utilized to help reduce operating costs, provide visibility and diversify the way consumers’ needs are met.
- Developing the capability to swiftly adapt to digital operations and drive actionable improvements from data is critical.
- Fleet management and supply chain networks should be continually responsive to ever-increasing customer requirements.
- Collaboration, supplier partnerships and ongoing risk monitoring are needed for more transparency and the ability to significantly de-risk the supply chain.
Innovate and Adapt for Future Supply Chain Success
The outlook for supply chains remains turbulent. In the face of disrupted and volatile market conditions, businesses must brace for the situation to worsen before it improves. Navigating the landscape of supply chain risks has always been complex, but today, businesses need to adopt a holistic and integrated approach that addresses the interconnected web of potential risks — from strengthening collaboration and cooperation with supply chain partners to embracing the transformative power of emerging technologies.
Proactive risk management must become an integral part of a business’s DNA to build more resilient and efficient supply chains capable of flexing to an ever-changing world where uncertainty prevails. Fostering a culture that embraces innovation and adaptation will empower workforces to seize opportunities for continued growth and improvement. With the right tools and support, businesses can reimage their supply chains to create dynamic and adaptable networks capable of withstanding inevitable future storms.
For further information and solutions related to global supply chain risk management, visit https://www.aon.com/en/insights/supply-chain-resilience
1 Food Security Update | World
Bank Response to Rising Food Insecurity, World Bank, 2023
2 Tech Leaves Food Industry More Exposed to Cybersecurity Threat, Just Food, 2023
3 For a
Livable Climate: Net-zero Commitments Must be Backed by Credible Action, UN, 2022
4 Pharma Logistics: Boosting Resilience and Sustainability When Transporting Sensitive Goods,
Maersk, 2023
5 Outsourcing in Pharma & Biotech: Shifting to Contract Manufacturing and Development,
Zymewire, 2022
6 Ibid.
7 From Cell
Therapies to US-made Ingredients, White House Outlines New Drug Manufacturing Goals, Fierce Pharma,
2023
8 Global
Renewable Power Prices Soar on Heavy Demand, Chaotic Supply Chain, Reuters, 2022
9 Renewable
Power on Course to Shatter More Records as Countries Around the World Speed up Deployment, IEA, 2023
10 Will
Construction Supply Disruption Continue? RICS, 2023
11 Construction
Costs Soar in the Face of Global Market Challenges, Infrastructure Global, 2022
30.7%
30.7% of city markets reported construction inflation of 10% or more in 2022.
Source: Construction Costs Soar in the Face of Global Market Challenges, Infrastructure Global, 2022
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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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Insurers are venturing into the thriving digital landscape of the Metaverse, covering virtual assets, safeguarding intellectual property, and protecting the wellbeing of users and avatars. With this evolution, comes new challenges and the unique opportunity to shape the future of insurance.
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Article 10 mins
Build Resilience for an Extremely Active Atlantic Hurricane Season
Record-warm Atlantic Ocean temperatures and a shift to La Niña conditions have led forecasters to predict an extremely active Atlantic hurricane season in 2024. Learn how to build business resilience to mitigate risk for hurricane-prone properties.
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Alert 7 mins
Workforce Implications of U.S. Supreme Court Ruling on ‘Chevron Deference’
The U.S. Supreme Court has changed the way laws are interpreted in the development of regulations. This change has the potential for far-reaching consequences for both regulatory agencies and employers.
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Article 18 mins
The Optimal Outsourced Chief Investment Officer
For institutional investors, engaging an outsourced chief investment officer, or OCIO, is one of the most critical decisions an organization can make. Choosing the right partner can lead to achieving the desired results or unexpected consequences.
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Article 4 mins
Credit Solutions Market Overview
Overview of the current trade credit insurance market and outlook on trend developments.
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Article 11 mins
Building a Future-Ready Workforce for the Professional Services Industry
The need to attract and retain high-quality talent in an environment of intense competition is at the forefront of professional services leaders’ minds.
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Article 11 mins
Enhancing Cyber Resilience in the Renewables Sector
Renewable energy is critical to meet net-zero targets, but as the industry grows, so do cyber attack surfaces. Learn how to prepare for emerging threats and support long-term ambitions.
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Article 7 mins
Connected Perspectives: Better Decisions on Interconnected Risks for FAB Organizations
As the scale and speed of interconnected risks escalate, innovative risk management strategies help FAB businesses build the resilience and agility needed to thrive.
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Article 10 mins
Driving a Future-Proof, Skills Based Approach for the Renewable Energy Sector
The renewable energy sector is undergoing a sweeping transformation, as it plays a pivotal role in the challenge to achieve global net-zero goals. Attracting, upskilling and retaining talent is critical for sustainability.
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Article 7 mins
How to Navigate Evolving Construction Contractor Risks in EMEA
Contractors in EMEA face an array of risks they must mitigate or transfer while managing the complexities inherent in major construction projects.
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Article 12 mins
8 Focus Areas for the Renewable Energy Sector
As more companies seek to reduce their carbon footprint, the renewable energy sector continues to grow, presenting both opportunities and red flags for organizations with renewable energy growth plans.
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Article 6 mins
Reshoring: Managing Risks and Building Resilience Closer to Home
Proactive risk management and data-driven reshoring strategies can empower risk managers in logistics companies to navigate supply chain complexities with confidence.
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Article 5 mins
Captive Insurance: Uptick in Use Reflects Market Realities
As more companies become comfortable using captives and understanding the value they add, captives are likely to become further embedded into corporate risk strategies, regardless of market conditions.
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Article 6 mins
Building Strategies for Sustainable Growth as a Mid-Sized Organization
Helping midsize organizations leverage key partnerships to address challenges around talent, market, regulatory compliance, and leveraging capital.
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Article 12 mins
Helping Employers Navigate the Rise in High-Cost Medical Claims
A rapid rise in medical plan costs is being driven in part by high-cost claimants — a high-risk group that disproportionately accounts for a large amount of healthcare costs. Here are strategies for addressing this issue.
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Article 9 mins
Four Steps to Implementing an Effective Online Benefits Platform
Online benefits platforms are a key component of the overall employee value proposition. As employers maximize the ROI of their people spend, here are four tips which may assist with implementing a successful online benefits platform.
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Article 8 mins
Pay Transparency Can Lead to Better Equity Across Benefits
Efforts to bring more transparency to pay practices shine a light on benefits equity — and it’s not only about wages and salary.
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Article 3 mins
Building Resilience Against the Constant Cyber Threat
The rapid pace of digitalisation means that organisations in the UK are constantly struggling with the ever-present threat of cyber attacks.
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Article 2 mins
Creating a Fair and Equitable Workforce for Everyone
Equity has an important part to play in a balanced strategy to improve the attraction and retention of key employees.
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Article 2 mins
How to Balance the Conflicting Forces of Efficiency, Performance and Wellbeing
How are business leaders adapting to a generational change in how work gets done?
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Article 2 mins
Introduction: Clarity and Confidence to Make Better Decisions
Lori Goltermann, CEO of Regions and Enterprise Clients, Aon examines the main issues discussed at the event.
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Article 2 mins
Making Better Decisions – A Treasurer’s Perspective
Our panel discussion looked at the issues facing corporate treasurers and how they have become more complex and interconnected.
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Article 3 mins
Seizing the Opportunity: Building a Comprehensive Approach to Risk Transfer
Businesses are still in search of competition, alternatives and innovation in their insurance programmes.
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Article 2 mins
Tapping New Markets to Unlock Deal Value
Companies and financial sponsors are constantly seeking innovative and capital-efficient ways to facilitate M&A deals.
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Article 2 mins
The Age of Rising Resilience – An Economic Outlook
Professor Trevor Williams analyses the latest indicators and what they mean for the UK — and global — economy.
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Article 2 mins
The Aon Difference
How Aon is moving further, faster to bring new, innovative solutions that address companies’ risk and people challenges.
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Article 5 mins
The Rise of the Skills-Based Organisation
Today's employers need to continually learn and adapt to emerging technologies and skills if they are to thrive in the talent landscape.
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Article 3 mins
The Year of the Vote: How Geopolitical Volatility Will Impact Businesses
Companies that operate around the world need to have a global appreciation of the heightening geopolitical risk.
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Article 6 mins
Three Ways Collective Retirement Plans Support HR Priorities
Collective retirement plans are growing in popularity and improving employees’ financial wellbeing in the process. Other advantages that haven’t been as widely explored include how these retirement structures allow HR to shift its focus to strategy.
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Article 8 mins
How North American Construction Contractors Can Mitigate Emerging Risks
Getting ahead of risk is vital for North American construction contractors, as they aim to manage evolving issues, while delivering job safety, solving workforce shortages and containing project costs.
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Alert 6 mins
U.S. Department of Labor Restores and Extends Overtime Protections
The Department of Labor released a final rule increasing overtime protections for the standard salary level threshold for the “white collar" exemptions and the threshold for employees classified as Highly Compensated Employees. Employers need to prepare for these significant changes.
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Article 10 mins
How Insurers Can Capture Climate Opportunities
Climate change adaptation and the transition to net zero present huge premium growth opportunities for insurers. The key question is how to get started.
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Article 7 mins
How to Navigate the EMEA Cyber Risk Insurance Market
As the cyber insurance landscape continues to evolve in EMEA, companies need actionable insights and solutions to strengthen their cyber risk strategies.
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Article 9 mins
Insurers Seek Risk Transfer Solutions to Offset Higher Retentions and Resume Growth
The challenges of 2023 eroded the buffers that many insurers had previously enjoyed, bringing an increased focus on capital management and a variety of capital sources according to Aon’s capital poll.
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Report 18 mins
Evolving Technologies Are Driving Firms to Harness Opportunities and Defend Against Threats
While advancements in AI, cyber and data technology are helping companies operating in an increasingly digital world gain a significant competitive edge, they also introduce new and evolving risks.
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Article 6 mins
How to Make the Most of Voluntary Benefit Plans in the U.S.
As healthcare costs rise, voluntary benefits are a critical component of engaging employees, while also helping to manage direct and indirect medical expenses. Here are three strategies for employers to make the most of their voluntary benefits.
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Article 8 mins
NIS2 Compliance Readiness for Organizations across the European Union
The expansive scope, stringent sanctions and pivotal role of management related to the new NIS2 Directive provide a strong foundation to protect against evolving cyber risks.
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Article 8 mins
London Insurance Market: Unveiling Demands for New Skills in 2024
The London insurance market seeks a generation of game-changers who can navigate uncertainties and drive innovation to ensure the industry’s future success in a digitalised world.
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Article 3 mins
Better Decisions in Trade, Technology, Weather and Workforce
From global supply chain risks to climate insecurity, organizations face challenges and complexities on a scale rarely seen before.
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Article 15 mins
How Artificial Intelligence is Transforming Human Resources and the Workforce
Artificial intelligence is having a measurable impact across all aspects of HR — from talent management to compensation, health and benefits, and retirement planning. To effectively harness the technology, HR leaders must ensure both their own teams and the wider workforce are prepared.
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Article 3 mins
Risk Capital and Human Capital Perspectives
Risk Capital CEO Andy Marcell and Human Capital CEO Lambros Lambrou discuss how innovations in Risk Capital and Human Capital can help organizations boost resilience and navigate volatility.
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Report 15 mins
Wide-Ranging Trade Issues Confront Global Businesses on Multiple Fronts
Global business leaders highlight risks linked to trade as some of their top concerns — both physical and financial. While the topic is complex and broad, there are opportunities that business leaders can pursue to stay ahead of emerging trade dynamics.
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Report 16 mins
Climate Analytics Unlock Capital to Protect People and Property
Extreme weather and a changing climate are impacting many of the risks businesses face today. To address future exposures, organizations will need advanced climate and natural catastrophe models and expertise that can assess chronic and acute risks.
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Report 14 mins
A Workforce in Transition Prepares to Meet a Host of Challenges
Engaging a changing workforce requires data and innovation. Workers increasingly expect more than just a paycheck. In response, organizations are balancing costs with the ability to provide a compelling employee experience.
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Case Study 3 mins
How Aon Helped M&G Wealth Develop New Advisor Skills
Aon partnered with UK financial advice firm M&G Wealth to help the firm better understand the make-up of a highly successful advisor of the future, including the skills needed given shifts in societal needs, technology and regulation.
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Article 8 mins
Energy Transition Investments: How Advanced Analytics Can Empower Organizations
Advanced analytics can empower organizations with deeper insights into the risks and opportunities surrounding renewables, while also supporting energy transition investment.
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Article 17 mins
Q1 2024: Global Insurance Market Overview
Positive performance in 2023 fueled insurer growth ambitions but underwriting remained disciplined in the first quarter of 2024.
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Article 12 mins
How Life Sciences Build Robust Talent Pipelines in the Age of Digitalization
While digitalization is delivering transformational change to R&D across the sector, it is also rapidly reshaping recruitment and retention strategies.
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Alert 6 mins
U.S. Federal Trade Commission Bans Employee Noncompete Agreements; Here’s What Employers Should Know
The FTC has announced a rule that bans noncompetes and clauses that have a similar effect. While the rule will face legal challenges, employers should take steps now to prepare for an environment where they cannot use noncompete agreements.
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Article 7 mins
Managing Construction Risks: 7 Risk Advisory Steps
Risk advisory services can help construction stakeholders navigate uncertainties, optimize performance and drive growth in their projects.
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Article 9 mins
Floating Offshore Wind Unlocks New Opportunities and Challenges
While there are similarities in the risk profile of floating offshore wind and bottom-fixed offshore wind, challenges like unproven technology and tow-to-port strategies for maintenance require a collaborative approach between owners/developers and their insurance partners.
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Article 4 mins
Parametrics Unlock Solutions For Future Risks
Macrotrends are transforming our world and creating emerging property-casualty exposures, which will have profound implications for the insurance industry.
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Article 7 mins
U.S. Cyber Insurance: Market Trends and Opportunities
Understanding market trends and future projections in an evolving cyber insurance market is paramount to strengthening risk mitigation and transfer strategies.
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Article 5 mins
How Climate Modeling Can Mitigate Risks and Improve Resilience in the Construction Industry
In an era of escalating climate-related challenges, the construction industry is turning to advanced climate modeling to fortify its risk management strategies.
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Article 14 mins
How Technology Will Transform Employee Benefits in the Next Five Years
Advances in technology will not only transform healthcare and treatment outcomes — benefit offerings, access to care, diagnosis, treatment and affordability challenges will also be radically changed. Here is what to expect as these efforts take shape globally.
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Article 10 mins
Key Trends in U.S. Benefits for 2024 and Beyond
As healthcare costs continue to rise, employers are struggling to balance cost control with attracting and retaining talent. The results of Aon's 2024 U.S. Health Survey point to key strategies organizations are using to help.
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Article 11 mins
Capturing Carbon on the Critical Pathway to Net Zero
As the world races to reduce climate risks and limit CO<sub>2</sub> emissions, the demand for scalable and cost-effective decarbonization technologies is increasing. Carbon capture projects form an important part of the low carbon energy transition, bringing both challenges and opportunities.
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Article 7 mins
Protecting North American Contractors from Extreme Heat Risks with Parametric
Growing extreme heat conditions have escalated risks, delays and costs for the construction industry in North America. Parametric insurance can help protect against such risks, offering contractors and building owners agility, efficiency and flexibility.
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Article 9 mins
How Insurance Can Help Hedge Potential Exposures Under the New Unified Patent Court System
The launch of the Unified Patent Court allows for a new patent filing process across Europe using a centralized system. While this brings significant financial and operational benefits, navigating these changes will demand a robust litigation risk management strategy.
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Article 8 mins
Parametric Can Help Mitigate Extreme Heat Risks for Contractors in EMEA
Construction projects in EMEA are often impacted by extreme heat, leading to project delays and increased costs. Many heat exposures are excluded by traditional markets, however, parametric is a flexible solution that can help mitigate these risks.
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Article 12 mins
Understanding and Preparing for the Rise in Pay Transparency
New regulations in the U.S. and Europe will require companies to be more transparent about their pay practices. Combined with willingness among workers to talk about salary, the era of pay transparency is here.
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Article 11 mins
Advancing Women’s Health and Equity Through Benefits and Support
As companies tailor their health and benefits to meet the needs of their employees, vital areas for support include family building and menopause.
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Article 7 mins
Unlocking Capacity and Capital in a Challenging Construction Risk Market
Complex market dynamics in the construction industry are pushing organizations to proactively explore alternative risk transfer solutions, including parametric insurance and captives.
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Article 11 mins
Securing Human Capital in Natural Resources
As new job roles and technologies emerge in the natural resources industry, employee expectations are also shifting. Leaders must rise to the challenge of securing talent to meet the world’s future energy needs.
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Article 5 mins
Navigating Cybersecurity Risk Under New U.S. Rules
Rulemaking from the Securities and Exchange Commission (SEC) highlights the importance of company transparency with investors and regulators around risk management and the impact of cyber events.
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Article 13 mins
Building Growth From Uncertainty in Financial Institutions
Five ways financial institutions can balance investment with prudence in an uncertain economic climate.
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Article 12 mins
Q4 2023: Global Insurance Market Overview
An increasingly interconnected and complex risk landscape continues to shape risk strategies and market responses.
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Article 13 mins
Top Risk Trends to Watch in 2024
To be successful, business leaders must keep pace with the key trends that will impact the risk and insurance landscape in 2024.
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Article 9 mins
How to Navigate Contractor Shortages in the Energy and Power Industries
Taking a new approach to talent management and planning for worker shortages can help businesses in the energy and power industries build greater operational resilience.
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Article 8 mins
Driving Inclusion and Diversity with Employee Benefits
As organizations build diversity, equity, inclusion and belonging in the workplace, they must also ensure benefit plans are designed and customized to meet the needs of a diverse workforce.
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Article 11 mins
How Investors are Making Better Decisions Amid a Changing Climate
For investors, climate change means navigating uncertainties and understanding a wide range of potential outcomes.
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Article 8 mins
Understanding Freeze Risk in a Changing Climate
Extreme cold and freeze were responsible for $15 billion worth of structural damage in recent years, as well as business interruption and supply chain impacts. We explore the threat chronic hazards pose and consider the influence of climate change on business.
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Article 7 mins
4 Steps to Help Take Advantage of a Buyer-Friendly Directors' & Officers' Market
The global D&O market remains soft, creating a favorable environment for buyers. With abundant capacity and increased competition, capitalizing on conditions now is critical as rates are showing signs of moderating.
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Article 17 mins
Five Big Human Resources Trends to Watch in 2024
It's never been more important for HR leaders to help shape and support the execution of business strategies. However, to be successful in today’s volatile world,