Supply Chain Losses Hit 86% of Companies, but Most Lack Adequate Coverage: Gallagher

The Connected Podcast: Navigating the Insurance EcosystemWelcome to the latest episode of The Connected Podcast, where we explore the intricate and constantly evolving landscape of the insurance industry. In this episode, we focus on current news and events shaping this complex ecosystem. Supply Chain Disruptions and InsuranceThe global supply chain continues to face significant challenges. Recent insights from Gallagher indicate that 86% of companies encountered disruptions in the past year, yet only a third had adequate insurance coverage. Rising material costs, geopolitical instability, and trade disputes are major concerns for over 70% of business leaders. Although many view these disruptions as ongoing challenges, only a quarter rate their risk mitigation strategies as effective. Uncertainty around tariffs is causing 40% of businesses to delay investments, and 90% are stockpiling goods. Additionally, 60% confess to lacking visibility beyond immediate suppliers. U.S. Homeowners Insurance CrisisThe U.S. homeowners insurance sector faces a potential insurability crisis due to climate-related disasters, as reported by the NRDC. Premiums have surged by 24% from 2021 to 2024, outpacing inflation. Uninsured homes have doubled, from 7% to 13%. In contrast, American Family Insurance reports a $2 billion increase in profit due to fewer catastrophic losses and strategic initiatives, although this has led to reduced customer retention. Looking forward, Crawford & Company predicts challenges in 2026 with factors like catastrophe losses and automation shaping claims management. The Role of AI in InsuranceThe podcast delves into the role of artificial intelligence (AI) in transforming the insurance landscape, with insights from Swiss Re. AI is being utilized to enhance operational processes, with significant improvements in underwriting efficiency and loss ratios reported by insurers embracing these technologies. The push towards compliance and accountability in insurtech is also discussed, with an emphasis on regulatory pressures and the importance of governance safeguards in technology design. Legislative DevelopmentsThe upcoming 2026 Big "I" Legislative Conference in Washington, D.C., is highlighted for addressing critical issues like lawsuit abuse and transparency in litigation funding. The podcast discusses technological advancements in flood insurance with the new Floodbase's Quote API, which reduces underwriting cycles significantly. Legislative reforms in Florida's auto insurance market and their impact on premium reductions are also explored, showcasing the benefits of strategic legislative actions. InsurTech America Symposium and Industry InnovationsThe podcast introduces the InsurTech America Symposium, a transformative event in the insurance sector, underlining the growth of insurtech across the U.S. Held at the Connecticut Convention Center, it promises networking opportunities for industry leaders and innovators. The episode also sheds light on the 'Connected' podcast by Alan Demers and Stephen Applebaum, offering professionals a convenient way to keep updated on industry trends via platforms like Apple Podcasts and Spotify. Finally, Pulse Podcasts' service is mentioned for its role in converting written content into engaging audio formats, extending audience reach effectively. Join us on The Connected Podcast to stay informed about these crucial developments in the insurance industry, showcasing the dynamic interplay of challenges and innovations shaping the future.``` Links:Supply Chain Losses Hit 86% of Companies, but Most Lack Adequate Coverage: Gallagher