Aon is reporting an upswing in demand for business interruption covers and business continuity planning as a result of the recent string of disaster events.

Pacific Region Chairman Steve Nevett says clients are more aware of the potential risks to their supply chains, and Aon is doing a lot more work with businesses to map their supply exposures and create and test business continuity plans.

“I don’t think it has ever impacted clients in the way it has in the past two years,” Mr Nevett told insuranceNEWS.com.au.

Local companies have felt the effects of supply chain breakdowns from the Australian floods and Christchurch earthquakes, while the Japanese earthquake and Thai floods have had a particularly pronounced impact on multinational businesses, as both countries are major sources of electronics and automotive parts.

“Increasingly the world is realising just how important the supply chain is in its interactions with Asia,” Mr Nevett said.

Demand for contingent business interruption insurance which covers supply chain exposures has increased.

He says Aon’s risk accountants, who workshop supply chains end-to-end with clients, are “frantically employed”.