Page 83 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 71

4.6. Supply Chain

Economic uncertainty and disruptions in the global supply chain continue to worry business leaders
who report feeling unprepared for growing geopolitical risks and inflation.

The geopolitical and macroeconomic shocks that occurred during 2022 included the war in Ukraine,
fractured energy markets, 40-year high inflation, interest rate hikes, depleted capital and Hurricane Ian,
the second most expensive natural disaster.

Aside from war, businesses are also concerned about increasing disruption from strikes, riots and
civil commotion activity as the cost-of-living crisis affects many countries, according to Allianz’s Risk
Barometer 2023.

Across the UK and the U.S., fewer business leaders feel well prepared to manage geopolitical risks
and concerns about the possible consequences of war - notably, war and terrorism risks and economic
unrest — are off the scale compared with a year ago.

Inflation is a dominating concern, said Beazley in its report titled Spotlight on Geopolitical Risks,
published in mid-2022.

The report emphasized that business leaders need to better understand their geopolitical risks and
prepare for and seek to mitigate them where possible. Specialist political risk, trade credit and terrorism
insurers have a role to play in providing appropriate cover that provides the risk mitigation that they
need, it explained.

Further, businesses will need to consider the likely heightened need for additional insurance coverage
such as D&O and trade credit.

Commenting on the scourge of deadly weapons attacks in the U.S., the report said the U.S. domestic
threat environment “is almost as challenging as overseas.”
The report indicated that it is vital that U.S. risk managers are not complacent about this risk. They
need to actively prepare “to help prevent and mitigate the impact of these horrendous incidents,” according
to Chris Parker, head of Terrorism and Kidnap & Ransom, who was quoted in the report.

4.7. Mental Health Services

Within the healthcare sector, two subsectors appear to present opportunities: home health care and
mental health care. Demand for their services is expected to increase even as they face challenges,
particularly in staffing, to meet those expectations.

The market for mental wellness will be driven by the increased awareness of mental illnesses, more
government initiatives supporting mental health services, the increasing role of employers in providing
mental health benefits, the continued aging of the population and a growing appreciation of the value or
earlier intervention.

The market is expected to rise from about $80 billion in 2022 to $105 billion by 2029, according to