In this presentation, Mikael will discuss the growing risks facing the “arteries” of the global economy - international supply chains - and what this means for the insurance sector. Drawing on a recent report from the Stockholm Environment Institute that he authored, Mikael explains why climate disruptions to production, logistics and critical inputs are becoming more frequent, more geographically correlated, and more financially consequential for firms and (re)insurers alike.
The talk highlights how supply‑chain shocks can propagate far beyond the hazard footprint through multi‑tier dependencies, creating systemic loss dynamics that are difficult to model, price and insure. It then outlines what this shift implies for insurability and the protection gap, including where traditional covers struggle with indirect losses and cascading business interruption, and where newer tools (such as parametric approaches) can help - but also where they may leave important exposures unaddressed.
The presentation concludes with high‑level implications for insurers, regulators and companies on integrating risk transfer into wider risk governance, data and standards, and resilience investment across value chains.
Speaker
Dr. Mikael Allan Mikaelsson MBE, Policy Fellow, Stockholm Environment Institute (SEI)