Complex global supply chains and transportation risks are driving corporations and insurers to focus on managing supplier networks to avoid disruptions that could harm businesses. Historically, companies and insurers lacked visibility into these networks beyond direct suppliers, leaving them vulnerable to unforeseen risks.
Altana is changing this by providing unprecedented insight into supplier networks. The Atlas allows corporations to proactively manage their supply chains and align coverage with areas of financial risk while enabling insurers to quantify the risk across their portfolio to meet the coverage needs of corporations.
Two common risks in supplier networks are:
- Single supplier relationships: When a business relies on a single supplier for a particular good, disruptions can severely impact operations. Altana reveals hidden single supplier dependencies deep within networks, enabling businesses to consider operational changes or targeted insurance to mitigate this risk.
- Bottleneck facilities: Facilities processing a significant portion of a business's goods are vulnerable points. Altana identifies these bottleneck facilities in indirect tiers of supplier networks, allowing for risk mitigation strategies or targeted insurance coverage.
Altana's Atlas provides detailed insights into facility locations, goods flows, and corporate structures, empowering insurers and their clients to focus coverage where it's most needed. This tailored approach replaces the traditional method of spreading small coverage limits across numerous suppliers.
Insurers are beginning to demand supplier network analysis for coverage requests and adjusting their reinsurance strategies based on accumulated exposures across clients. Altana's advanced analytics enable proactive supplier network management for corporations and optimal insurance coverage for insurers, ultimately enhancing risk management in supplier networks.
Corporations that proactively manage their supplier networks are expected to have more favorable limits and premiums, as their diligence reduces their risk profiles.
