A supply chain disruption is any major break in the global chain of manufacturers, suppliers, shippers, wholesalers, and retailers that stops goods and materials from moving as they normally would. When disruptions occur, manufacturers face shipping delays, delivery slowdowns, shortages or excess stock, higher costs, and ultimately higher prices for customers.

Some disruptions are predictable, such as the surge in holiday demand that empties shelves of popular items. Others, like a global pandemic, sudden labour strike, or major weather event, appear with little warning. Tariffs and trade restrictions are also a growing cause, since new or increased tariffs can suddenly raise import costs, squeeze margins, and disrupt established supplier relationships.

Efficiency vs Risk Reduction

Supply chains need to balance two competing goals: efficiency and risk reduction.

• Efficiency means running operations at the lowest possible cost, holding minimal inventory, and reducing duplication of routes, facilities, or safety stock.
• Risk reduction means identifying vulnerabilities, lowering exposure, and planning responses when disruptions occur.

The challenge for businesses is to strike the right balance. Lean, low-cost supply chains are efficient, but they are more fragile. Adding buffers and backups increases resilience, but often at a higher cost.

Internal vs External Risks

Disruptions generally stem from two main sources:

• Internal risks: These come from within a company, such as inefficient supply chain management (SCM), outdated systems, or human error like incorrect purchase orders. Improving SCM processes, particularly with automation, can reduce these risks by making demand planning more accurate and reducing waste.
• External risks: These are largely beyond a company’s control, including natural disasters, strikes, geopolitical conflict, tariffs, and trade embargoes. For example, a new tariff could suddenly raise the cost of key raw materials, forcing companies to either absorb the cost or pass it on to customers. One common response is diversifying suppliers, such as combining overseas and domestic sources, to spread risk. This can stabilise supply but often increases costs.

Real-World Examples

Recent years have shown how fragile global supply chains can be. When COVID-19 struck, driver shortages created massive backlogs at ports. Goods piled up, shelves emptied, and prices skyrocketed. Even today, trucking companies are still struggling to hire enough drivers, offering bonuses and lowering age requirements to attract recruits.

Other examples show how quickly disruptions spread. A drought in California can reduce avocado harvests, prompting US retailers to import from overseas. The added shipping costs, and sometimes tariffs, are passed on to consumers. Similarly, geopolitical tensions can lead to tariffs or embargoes that ripple through industries worldwide, from electronics to agriculture.

Using Technology to Manage Disruptions

While not all disruptions can be prevented, intelligent supply chain management tools can help companies prepare and respond. These include scenario modelling, predictive analytics, and AI-powered planning tools that can forecast risks, test different strategies, and recommend actions.

Key Takeaways

• Major disruptions are expected to continue in the coming years.
• Risks come from both inside companies, such as inefficient processes, and outside factors, such as weather, tariffs, strikes, or global conflict.
• Balancing efficiency and resilience is critical. Overly lean supply chains may save money short term, but they are less prepared for shocks.
• Technology and diversification strategies can help reduce risks, though they often increase costs.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Healthcare systems worldwide face pressure from ageing populations, rising chronic illnesses, costly treatments, and staff shortages. At the same time, heavy documentation demands are burning out doctors and nurses.

AI, particularly predictive and generative AI, is helping ease the load. From spotting hidden patterns in scans to automating routine admin, AI has the potential to improve efficiency, cut costs, and boost patient outcomes.

What Is AI in Healthcare?

Artificial intelligence uses data and advanced models to identify trends, predict outcomes, and support decisions. In healthcare, it is being used in:

• Electronic health records (EHRs): AI-enhanced systems create quick patient summaries, simplify navigation, and automate note-taking, giving doctors more face time with patients.
• Diagnostic imaging: AI can highlight scan areas likely to show disease and measure early indicators, saving radiologists time and increasing accuracy.
• Administration: Automating billing, scheduling, reminders, and insurance authorisations reduces paperwork and hospital costs.
• Research and drug development: AI sifts through EHRs and lab data to find trial participants, spot side effects, and identify potential new treatments.

Benefits

• Saves clinicians' time and reduces burnout.
• Improves accuracy in diagnosis and imaging.
• Streamlines hospital scheduling, resource use, and patient reminders.
• Speeds up drug development and research by analysing large data sets.

Challenges

• Trust: Doctors may hesitate to rely on AI, especially in complex cases.
• Privacy and regulation: Strict data rules limit how much information can be used to train AI models, though new frameworks are emerging.
• Data quality: Incomplete or inconsistent medical data weakens results, and cleaning it is costly.
• Data silos: Different EHR systems do not always communicate, limiting data sharing.

The Road Ahead

AI will not replace doctors but act as an assistant, helping them make better decisions and spend more time with patients. Hospitals and governments will need to invest in data quality, interoperability, and regulation to unlock AI’s full potential.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Human error is responsible for 95% of cyber-attacks, whether you're a large multinational corporation or corner store.

Now is the time to refresh your cyber security practices and update training to protect your business and customers.

Simple Cyber Security Fixes

Ongoing training and systems checks are the key to your organisation’s cyber resilience.

Cyber incidents remain one of the most significant threats facing Australian small and large businesses. 

The Australian Cyber Security Centre (ACSC) has released a simple to action Cyber Security Checklist – ACSC aimed at small businesses to reduce their exposure and meet basic security standards.

The checklist focuses on three key areas:

1. Secure Your Accounts

• Enable multi-factor authentication (MFA) for all key accounts
• Use a password manager to store strong, unique passphrases
• Avoid using shared accounts, or secure them properly if necessary
• Restrict user access to only what’s required for their role

2. Protect Your Devices and Information

• Enable automatic updates for devices and software
• Back up important data regularly and securely
• Install and maintain security software with regular scans
• Secure your network by consulting an IT professional
• Safeguard your website, using ACSC guidance
• Factory reset devices before disposal or resale
• Auto-lock devices after short periods of inactivity
• Understand what data your business holds and your legal responsibilities to protect it

3. Prepare Your Staff

• Provide cyber security awareness training for employees
• Develop an incident response plan
• Join the ACSC Partnership Program for alerts and resources
• Consider implementing Maturity Level One of the Essential Eight cyber mitigation strategies

You can access the full checklist here: Cyber Security Checklist – ACSC

Cyber Insurance  

There is a wide range of cyber insurance available, all cover liability to third parties for passing on viruses. Other policies cover damage to your own networks. Additional sections that we recommend be considered include:  

• Incident response – specialists to identify the issue and repair; 
• Lost business income and additional costs related to the incident; 
• Data recovery and restoration;
• Consumer notification costs and ongoing monitoring costs; 
• Legal defences costs;
• Cyber extortion management and fees; 
• Crisis and PR management of the incident; and 
• Management of communications with regulators.

Cyber insurance is a key part of your management of cyber incidents and attacks. 

Talk to your insurance adviser, who can assist with free cyber resources and discuss risk management, including insurance options tailored to your business and budget.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Global business uncertainty remains over Tariffs and tensions in the Middle East and Central Asia.  Recent forecasts suggest that global business insolvencies could increase by 7% in 2025 after increasing 12% in 2024. 

On average, 1 in 10 invoices becomes delinquent, causing financial strain for businesses of all sizes. This continues to prove the importance of trade credit insurance as a financial safeguard.

The Rising Risk of Insolvencies and Delinquent Invoices

The economic landscape is seeing a steady rise in the number of businesses facing insolvency, driven by factors such as global supply chain disruptions, inflationary pressures, and escalating tariffs. This is particularly relevant for businesses dealing with international trade, where external factors such as tariff increases and political instability can exacerbate financial challenges.

Additionally, 1 in 10 invoices becoming delinquent means that businesses are increasingly having to manage outstanding debts, often leading to cash flow problems. When businesses fail to pay their invoices, suppliers are left vulnerable, and the risk of not being compensated for delivered goods or services grows.

In such an environment, businesses must take proactive steps to protect their financial health, including investing in trade credit insurance.

What is Trade Credit Insurance?

Trade credit insurance is a type of cover designed to protect businesses from the financial risk of unpaid invoices and customer insolvencies. It acts as a safety net, covering the majority of the invoice cost if your customers fail to pay for goods or services, due to financial difficulties or insolvency. This coverage ensures that businesses are able to maintain a steady cash flow, even when facing delayed or missed payments.

Tips to managing your cash flow risks

• Assess Your Exposure to Risk

Start by evaluating your business’s exposure to the risks of insolvency and invoice delinquency. This involves reviewing the financial health of your customers, particularly those in foreign markets, and understanding how susceptible they are to economic disruptions, including tariff changes. Consider how much of your business relies on credit sales, both domestically and internationally.

• Review Your Credit Limits and Payment Terms

Reassess the credit limits you extend to customers, especially those with whom you have a limited or volatile trading history. Tightening credit limits or shortening payment terms can help protect your cash flow while ensuring you don't over-expose your business to high-risk clients.

In light of global trade tensions, especially related to tariffs, consider requiring partial upfront payments or deposits for international orders to reduce your exposure to delinquent invoices.

• Monitor Your Customers’ Financial Health

Regularly monitor your customers’ financial stability and creditworthiness. Many trade credit insurers provide access to credit reports and monitoring services, allowing you to track any financial changes or signs of potential insolvency. In light of the forecasted increase in business insolvencies, keeping a close eye on your customers’ financial status will help you make informed decisions on extending credit and mitigating risks.

• Diversify Your Customer Base

Over-relying on a small group of customers can increase your vulnerability to payment defaults. Consider diversifying your customer base, particularly by exploring new markets, to reduce the impact of a single customer’s failure to pay. Expanding your business beyond any single market or region, especially those exposed to tariffs, can provide a level of protection and lessen the risk of your revenue stream being disrupted.

By taking proactive steps such as assessing your exposure, purchasing the right insurance coverage, monitoring your customers’ financial health, and working closely with your insurance adviser, you can minimise the financial impact of unpaid invoices and safeguard your business from the negative effects of increasing insolvencies and global trade challenges.

If you're unsure about the right trade credit insurance policy for your business, it’s a good idea to consult with an insurance adviser who can help tailor a solution to your specific needs and ensure you are well-protected.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Keeping occupiers and visitors safe is paramount for property owners and building managers.

Thermographic scans are essential early detection checks that can identify ‘hot spots’ in electrical equipment which can identify faulty electrical systems.

How do they prevent fires?

An annual scan as part of the routine maintenance can detect electrical hot spots, a sign of malfunction or overheating in key equipment that are likely to cause power outages, short circuits or fires. 

What is a Thermographic Scan?

Scans are undertaken by qualified professionals with handheld specialised cameras that capture infrared radiation (‘Hot Spots’). This is a non-invasive method used to identify and detect faults or potential issues in the wiring and electrical systems, including:

• Electrical Switchboards
• Motors including Bearings and Gearboxes
• Electrical Panels
• LV Equipment
• Transformers
• Power Factor Correction Units

Why Do You Need a Thermographic Scan for Your Building?

1. Safety of Tenants and Visitors

• The safety of people in the building is of paramount importance. The building and loss of rental income can be insured, preventing fires is a legal requirement as a PCBU for the safety of tenants and visitors.

2. Fire Prevention

• Electrical fires are one of the leading causes of property damage. Faulty wiring, overheating components, or loose connections can spark a fire if left unchecked. A thermographic wiring scan can detect hot spots before they turn into a major problem. By identifying areas at risk of overheating, you can prevent fires from starting and protect your property and rental income.

3. Reduced Downtime and Disruptions

• For commercial properties, electrical issues can lead to significant downtime, affecting daily operations. A thermographic wiring scan can identify potential issues before they cause power outages or disruptions. This proactive approach helps maintain the smooth operation of your building’s electrical systems and avoids unplanned interruptions.

4. Compliance with Regulations and Insurance Requirements

• Regular electrical inspections are required to comply with building codes and safety regulations. A thermographic wiring scan can form part of these inspections, ensuring that your building is in compliance. Additionally, many insurance policies require proof of regular electrical inspections, and failing to meet these requirements may affect your insurance cover.

A thermographic scan is relatively cheap when compared to a fire and potential for people being injured and damage to the building and loss of rental income. 

It is usually a requirement to meet local laws and regulations and also for insurance. 

Talk to your insurance adviser, they will be able to discuss your needs and assist with organising a thermographic inspection, if needed.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Vulnerability can be short or long term and includes issues related to age; disability; mental health conditions; literacy barriers; cultural background, etc.

Insurers and insurance advisers and assessors are required to treat this information, Confidentially, so it’s not shared with other unless it’s needed to assist you.

Vulnerable Person

Examples of Vulnerable persons might include people experiencing:

• Financial hardship: this can a result of a fire, storm or disaster or reduced income due to loss of work. 
• Family violence, Coercive Control: insurers can provide additional advice and work with you as needed.
• Disabilities: Physical or mental disabilities, let your insurer know, so they can work with you especially when making a claim. 
• Cultural, language or literacy: insurers are required to offer additional advice and assistance when you’re buying insurance or when it’s time to make a claim.

Let your insurer know about your Vulnerability so they can assist you.

Key reasons to advise your Vulnerable

Enhanced Claims assistance - You receive additional assistance as needed during the claims process, including priority assessing and repairs and claims assistance.

Insurance company & your insurance adviser - will work with you to assist as needed, revising premium payments, offering counselling or similar services to best manage the vulnerability. 

How to Disclose Vulnerability to Your Insurer

If you or a member of your household is vulnerable (even if you're not sure) let your insurance adviser or the insurer/ assessor know as soon as possible. 

Let them know your personal circumstances and how you are impacted, it doesn't matter if it’s temporary or permanent. For example, let the insurer know you live outside the nearest town or experiencing personal hardship due to a family matter or loss of income. 

If someone has a disability, explain how this affects their daily living. If you have elderly relatives at home, mention their age and any specific needs they may have.

Help if you’re Vulnerable

Vulnerability includes issues related to age; disability; finances, mental health conditions; literacy barriers; cultural background, domestic situation etc. It can be short or long term.

Talk to your insurance adviser, insurer and assessors if you think you’re Vulnerable, they will treat your information Confidentially and Empathically, also then can provide you with additional support and assistance.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.