Bringing business back home: Unlocking Resilience and Opportunity for Nordic companies

There is an optimism for European markets and Nordic growth impacted by unpredictable tariffs and other geopolitical turmoil. This fosters Nordic multinational companies bringing operations closer to home. Many organizations are expanding their existing European facilities as the announced tariffs make businesses rethink where they manufacture and develop products.

 

This can have many positive impacts including less exposure to severe natural catastrophes such as hurricanes and earthquakes, and at the same time reducing dependencies on external sources and supply chains.

 

An emerging European market

European governments’ growth initiatives create Europe-wide investment in manufacturing, renewable energy, and infrastructure, driving a positive outlook. By upscaling production locally and embracing advanced technologies, Europe is strengthening its economic resilience.

 

This shift is also shaping the commercial insurance landscape as businesses are expanding or building new facilities, creating a higher need for especially tailored construction-, property and business interruption insurances.

 

Understanding the impacts on your business

New global tariffs are reshaping the economic landscape and introducing challenges for international businesses. These changes can disrupt supply chains, increase costs, and add uncertainty to financial outcomes.

 

To navigate this volatility, businesses need to conduct internal assessments and have a strategic approach to risk management. Not just reacting to today’s challenges, but also planning for tomorrow’s opportunities. From a Property insurance perspective, focus areas should be:

 

• Supply chain resilience: Diversify suppliers and consider alternative sourcing strategies to reduce dependency on any single region.
• Scenario planning: Prepare for multiple outcomes by assessing potential tariff changes and quantifying their impact on your operations, sales and key markets.
• Business impact assessments: Identify vulnerabilities in your supply chain and develop mitigation plans.
• Policy coverage review: Regularly review your insurance policies to ensure they cover new risks arising from tariff changes, such as business interruption or increased transportation costs.
• Inventory management: Reassess inventory strategies - consider stockpiling critical components or finished goods to buffer against supply delays or sudden price hikes.
• Geographic diversification: Consider expanding operations or warehousing to different regions to reduce exposure to tariffs targeting specific countries or areas.
• Regulatory compliance: Stay up to date with changing customs regulations and ensure compliance to avoid fines, penalties, or shipment delays.
• Collaboration with insurers: Work closely with your broker and insurance company to adapt your risk management and loss prevention strategies in response to changing trade environments.

 

Insurance as a tool for stability

This year, Zurich Nordic marks 150 years of supporting businesses with stability and confidence. Our long-standing presence in the market reflects deep industry knowhow, built on decades of risk inspections, loss event management, and close partnerships with multinational companies. With this experience, Zurich is uniquely equipped to help guide your business through the complexities of global tariffs and today’s changing geopolitical landscape, strengthening your resilience for the future.

 

For further information on how Zurich Nordic can help your company build resilience, please contact Britt Hougaard Bo, Underwriter Property.