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Automotive

During a time of unprecedented change for the global automotive industry, Marsh provides tailored insurance and risk management solutions that support companies’ competitiveness and resilience.
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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.

For 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.

To find out more, visit our expertise and insights sections.

The Global Risks Report

The top risks for 2024 and beyond. Data and insights from more than 1,400 global experts and leaders.

Explore the report

Featured insights

Examine the influence of AI on optimising transportation routes for factory supply chains

Article

30/05/2024

Can AI strengthen supply chains as the auto industry decarbonises?

Leveraging AI can help companies in the automotive and manufacturing industry to alleviate risk threats in their supply chains, giving them competitive advantage.

car is in autonomous driving mode with a panoramic glass roof while driving at night in the mountains

Podcast

23/10/2023

Risk in Context Podcast: Balancing the risks and opportunities of the autonomous vehicle revolution

The automotive industry is going through a major transformation, with manufacturers focusing on the electrification of vehicles and autonomy.

Robotic assembly line in an automotive factory

Article

06/09/2023

Becoming recall ready in the evolving automotive landscape

Recent data reveals European automotive recalls increased 17.7% in 2021 - more than 128% above the annual industry average of the last 15 years. Organizations in the automotive industry need to be prepared.

View more

FAQs

Globally, the automotive industry faces a wide variety of both familiar and emerging risks. These include:

  • Supply chain disruption
  • Environmental regulation
  • Product recalls
  • Electric-powered vehicles
  • Driverless vehicles
  • Cyberattacks and data breaches

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:

  • Analytics, loss control, claims consulting, advisory, and placement for insurance related to employees.
  • Product recall and liability insurance.
  • Financial and professional analytics, advisory services, placement, and claims advocacy.
  • Reputational risk and business resiliency relating to the global supply chain.
  • Cyber risk consulting, including network security and privacy risk.

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.

Talk to us

Contact us to get in touch with an industry or risk subject matter expert, learn more about a specific solution or submit a sales/RFP inquiry.

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