A significant proportion of the semiconductor industry likely lacks protection against extreme weather, a problem highlighted in a recent study by reinsurance/insurance broker WTW.
The global semiconductor industry survey also highlighted that coverage gaps can become costly as extreme weather increases. One is the lack of available capacity.
Innovative semiconductor-based technologies are rapidly changing and advancing many areas of life, from electric vehicles to mobile devices. At the same time, semiconductor manufacturers face pressure to meet increasingly complex and changing end-product requirements from their customers.
The survey said:
Furthermore, “Weak links in the chain can undermine the industry’s ability to keep pace, cited by 44% of respondents as the biggest risk.”
According to the study, companies in high-risk regions said they were unsure whether they would be covered for property damage from extreme weather, making this one of the key challenges facing the semiconductor industry. increase.
The survey said: .
“Just over half (51%) say they have some coverage but aren’t sure if it’s enough.”
Their survey also found that 67% and 41%, respectively, of Asia-Pacific and North America, where extreme weather events have historically impacted semiconductor manufacturers, also admitted they were unsure of full insurance coverage. I’m here.
WTW advises semiconductor companies to reassess what matters to their business, where they need to focus, how they can manage the key risks they face and where they need more protection .