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Swiss Re — Investor Presentation (September 2020)
18 slides from Swiss Re's investor presentation, September 2020
Slide 1: sigma 6/2020: De-risking global supply chains: rebalancing to strengthen resilience
sigma 6/2020: De-risking global supply chains: rebalancing to strengthen resilience Irina Fan, Head of Insurance Market Analysis
Slide 2: Welcome & Introductions
Welcome & Introductions Your Panel of Speakers Stephen Higginson Head Customer & Distribution ANZ, Swiss Re Corporate Solutions Irina Fan Head of Insurance Market Analysis, Swiss Re Institute Exposure: Tropical Cyclone causing wide area damage and loss of attraction to island resort Protection for t
Slide 3: A ship in port is safe (Grace Hopper quote)
"A ship in port is safe, but that is not what ships are built for. Sail out to sea and do new things" ~Grace Hopper Swiss Re Institute | September 2020
Slide 4: Supply Chains: the key point(s) to remember!
Supply Chains: the key point(s) to remember! 4
Slide 5: Driving forces: supply chain changes are under way
Driving forces: supply chain changes are under way “Underlying drivers, such as diminishing cost arbitrage benefits, costly disruptions from more frequent natural catastrophe events, new technology and rising political risks, are reshaping global supply chains. COVID-19 is just an accelerator.” Swis
Slide 6: Global supply chain disruptions: China in focus
Global supply chain disruptions: China in focus In the world's largest 20 economies, 40-80% of exports are integrated into global supply chains As the largest supplier of intermediate goods, China is at the core of GSCs and disruptions The computer and electronic equipment trade is most vulnerable,
Slide 7: COVID-19 has instilled new urgency for restructuring of Global Supply Chains
COVID-19 has instilled new urgency for restructuring of Global Supply Chains Underlying drivers Accelerator Supply chain adjustments Diminishing cost arbitrage advantages Diversification (narrowing wage differentials) (geographic, suppliers) Rising political risk Relocation/parallel supply chain (ie
Slide 8: Globalisation has peaked before the Global Financial Crisis
Globalisation has peaked before the Global Financial Crisis As part of the overall fallout from the GFC, there been some tempering of the globalisation "spirit" over the last decade Globalisation has fueled economic inequalities in advanced economies and contributed to populist shifts in many countr
Slide 9: Diminishing cost arbitrage advantages
Diminishing cost arbitrage advantages China has lost its labour cost advantage over other Asian markets There have also been improvements in ease of doing business elsewhere in Asia, in particular Thailand, Malaysia and Vietnam. Ranking of emerging markets in Asian markets in terms of Annual cost of
Slide 10: Economic growth and insurance market implications
Economic growth and insurance market implications “Relocation or reshoring will generate ~USD 1 trillion from additional exports and investments to alternative locations and USD 63 billion from new insurance premiums, as well as positive growth during the transition. But ultimately, long-term potent
Slide 11: Globally, industry sectors most likely to move
Globally, industry sectors most likely to move …… Non-economic factors such as national strategic priorities are becoming increasingly important in decision-making Economic Non-economic Share of export (%) Market factors factors with shift potential capitalisation low high USD bn Pharmaceuticals 1 4
Slide 12: Potential impacts on economic growth and insurance
Potential impacts on economic growth and insurance The new dynamics will generate USD 1 trillion from additional exports and investment to alternative locations during the 5-year transition Global GDP will gain by 0.2% per year during the transition, but long-term growth potential will be lower due
Slide 13: Adding resilience to global supply chains
Adding resilience to global supply chains Supply chain risks Risk mitigation Examples for risk transfer via insurance • Business interruption (BI) and contingent business • Redundancy of interruption (CBI); Cover for losses or extra expenses resulting Catastrophes from physical damages at own premis
Slide 14: The role of technology in supply chain risk management
The role of technology in supply chain risk management Role of Technology New opportunities Swiss Re Partnership with Microsoft • End-to-end data platform to • Digital marketplace – Digital Market Centre to help develop reduce operational risk efficient distribution of large-scale tools that predict
Slide 15: Key takeaways
Key takeaways The urge for Macro trends in reshaping the global supply chains were in place already pre- Global Supply Chain COVID-19. The ramping up of US-China trade tensions and COVID-19 instils greater resilience urgency for Global Supply Chain resilience Parallel supply chains will emerge. We e
Slide 16: We must learn to sail in high winds (Aristotle Onassis quote)
"We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds." ~Aristotle Onassis Swiss Re Institute | September 2020
Slide 17: Thank you!
Thank you! Contact us Follow us Stephen Higginson Lisa Matthews Head Customer & Distribution ANZ Customer & Distribution Manager ANZ [email protected] [email protected] (03) 9935 0001 (03) 9935 0009
Slide 18: Legal notice
Legal notice ©2020 Swiss Re. All rights reserved. You may use this presentation for private or internal purposes but note that any copyright or other proprietary notices must not be removed. You are not permitted to create any modifications or derivative works of this presentation, or to use it for