Industry urged to prioritise risk control

Amid increasing complexity and fragmentation in global supply chains, one of the most notable shifts is the expectation that risk mitigation be embedded operationally, rather than treated as an afterthought or transferred entirely through insurance. According to Johan Eksteen, business manager: connectivity and products at SGS South Africa, insurance terms are increasingly influenced by evidence of proactive controls, including independent inspection, compliance monitoring and transparent reporting. Businesses that can demonstrate these capabilities are better positioned in both underwriting and claims scenarios. “Security, insurance and risk management are converging into a single, integrated value proposition for the logistics sector,” he said. “Independent inspection, verification and data integrity are no longer ‘nice to have’, but are becoming foundational requirements for sustainable trade, insurability and long- term operational resilience.” Eksteen said the next 12–24 months would remain challenging. “We expect continued premium pressure, tighter underwriting criteria and growing demand for verifiable risk assurance,” he said. He emphasised that organisations investing in independent oversight, compliance assurance and digital traceability would be better positioned to manage cost, continuity and insurer expectations in an increasingly volatile trade environment. According to Eksteen, SGS is continuing to strengthen its role as an independent risk and compliance partner to the logistics and trade ecosystem, with a focus on preventative assurance rather than post- incident response. “Recent developments include expanded cargo integrity, inspection and verification services, enhanced supply chain security assessments and greater use of digital platforms to improve traceability, transparency and evidentiary quality across trade and logistics flows. “These solutions support clients and insurers by reducing ambiguity, improving loss prevention and providing independently verifiable data throughout the shipment lifecycle,” he said. He noted that the current environment was increasing exposure to cargo theft, tampering, diversion and operational disruption. “Security risks are no longer isolated events; they are systemic, influenced by infrastructure stress, geopolitical instability, non-compliance and inconsistent standards across borders,” he told Freight News. “This makes independent oversight and standardised risk controls increasingly critical across the value chain.” Eksteen said insurers were grappling with loss volatility, rising claims severity and limited risk visibility, particularly across high-risk routes and commodities. “As a result, there is growing pressure on insured parties to demonstrate effective, verifiable risk management practices. Insurers are placing greater emphasis on independent inspection, condition reporting and compliance verification as part of underwriting and claims mitigation strategies.” He added that key risks included cargo theft, contamination, damage, regulatory non- compliance, route disruption and data integrity issues. “These are driven by increased trade complexity, tighter regulations, infrastructure constraints and rising cost pressures.” LV