The insurance approaches of businesses in 2025 to a range of supply chain risks reveal both consistency and notable shifts when compared with 2023, according to WTW’s ‘Global supply chain risk report: Navigating supply chain risks and insurability’, released recently.
Businesses are shifting the way they manage supply chain risks, with a stronger focus on geopolitical risk, cybersecurity, supplier-related challenges and internal risk frameworks.
Across different insurance categories, the levels of coverage reflect how businesses are prioritising and managing risk in a more complex environment.
Business interruption
For business interruption, the coverage by specific insurance increased significantly to 22% in 2025, up from 17% in 2023, indicating a growing awareness of the need for direct protection against physical damages, such as fires. However, a large portion of businesses—52% in 2025 and 53% in 2023—continued to rely on other forms of insurance to address this risk. Interestingly, the uncertainty surrounding coverage decreased from 26% in 2023 to 17% in 2025, signalling that organisations are gaining greater clarity in their risk management practices.
Cyber
In the case of cyber risks, organisations reporting specific insurance coverage slightly decreased from 54% in 2023 to 50% in 2025. Despite this decline, cyber risk remains one of the most explicitly insured categories. The proportion of organisations uncertain about their coverage rose slightly from 10% in 2023 to 13% in 2025, reflecting a potential gap in confidence as cyber threats continue to evolve.
D&O
For D&O liability, specific coverage decreased from 51% in 2023 to 44% in 2025. This may reflect a shift in priorities in how organisations allocate insurance resources. Meanwhile, risks covered by other forms of insurance increased from 30% in 2023 to 39% in 2025, suggesting businesses are turning to alternative methods to protect executives from liabilities.
Others
Coverage of environmental risks remained relatively stable, with 41% of organisations in 2025 reporting specific insurance, compared with 43% in 2023.
Reliance on other forms of insurance also showed consistency, with 35% in 2025 and 36% in 2023. However, uncertainty about coverage rose slightly from 19% to 21%, reflecting ongoing challenges in addressing complex environmental liabilities.
For errors and omissions (E&O), specific coverage declined from 22% in 2023 to 18% in 2025, while reliance on other forms of insurance rose slightly from 2023.
Uncertainty about E&O coverage also increased, with 31% in 2025 expressing doubt, compared with 26% in 2023. This shift highlights the need for clearer strategies in addressing professional liability risks.
Public liability insurance saw modest shifts, with specific coverage decreasing from 42% in 2023 to 39% in 2025. Reliance on other forms of insurance remained stable, while uncertainty about coverage grew to 25% in 2025, up from 24% in 2023.
The survey, carried out in November 2024, polled 1,000 senior decision makers, including risk managers, supply chain and logistics managers, and CEOs. They hailed from East Asia, Southeast Asia, South Asia, Oceania, North America, Western Europe, Northern Europe, Central Europe and South America. They were from companies with annual revenues exceeding $250m and engaged in a range of different industries. M