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The global automotive industry is facing new risks and finding new opportunities as a result of technological change, shifts in consumer demand, and growing environmental concerns.
Automotive businesses need to be agile amid pressure from their customers, their competition, and their regulators. From established threats such as supply chain disruption and product recalls to the exciting new frontiers of electric vehicles and self-driving cars, the need for expert risk management is one consistent theme.
At Marsh, our automotive practice is staffed by experienced risk management advisors who know the industry and understand the global and local issues automotive businesses care about. Our goal is to help you thrive during this period of disruptive innovation.
Globally, the automotive industry faces a wide variety of both familiar and emerging risks. These include:
Your specific risk priorities depend on where you are in the automotive supply chain. The challenges facing automotive manufacturers are different from those typically encountered by vehicle dealerships and parts suppliers.
The common theme though is the transformative effect of technology. From how vehicles are made to how they are sold and insured, technology is bringing huge and rapid change. With that change comes new threats — and opportunities — for automotive businesses.
Cyberattacks are a growing problem for automotive businesses. From an automotive dealership that now handles more customer data than ever to an automotive manufacturer that will grind to a halt if its IT systems are compromised, the industry is an increasingly attractive target for malicious hackers.
Meanwhile, the complex, integrated technology that is built into modern consumer and commercial vehicles has opened up new areas of risk. Cybercriminals now have more potential routes through which to attack both automotive firms and their customers.
Marsh's cyber risk solutions could be immensely valuable to your organization to help you strengthen resiliency and mitigate the risks of such attacks.
Product recalls are not a new risk area for the automotive industry. But they do remain a significant source of potential reputational and financial harm.
Major product recalls attract a lot of media coverage and can undermine consumer confidence. The recall itself and potential legal ramifications can have a significant impact on your bottom line.
Technology is again the driving force behind the changing nature of product recalls, bringing both new risks and new opportunities for automotive businesses.
On the one hand, modern vehicles' complex onboard systems have increased the list of potential problems that might require a recall. On the other hand, rolling out a software update to eradicate an IT vulnerability is a lot cheaper than replacing a physical component in your most popular model.
The automotive industry comprises businesses of all sizes and across a wide variety of functions. As such, insurance and risk management solutions need to be properly tailored.
Common global insurance and risk management services vital to the automotive sector include:
At Marsh, our automotive practice combines industry knowledge, global experience, and local expertise to deliver the right insurance and risk management solutions for your business.