The automotive industry is undergoing unprecedented change from eMobility and technologically advanced vehicles packed full of microchips to ever newer systems, just-in-time deliveries around the globe and field trials. This rapidly changing sector is being repeatedly exposed to a host of rapidly evolving new risks and it doesn’t seem likely to abate any time soon.
At GrECo we have over many years’ experience working with the automotive industry. Through our unparalleled experience we work with clients to provide unique solutions to fit their individual needs.
The most frequently posed risks in the automotive industry are potential product liability and vehicle recalls due to safety-related defects, as well as chip shortages; hard-to-find raw materials like aluminium, magnesium, and palladium; and supply chain disruptions. Furthermore, on the customer side, the automotive sector in particular, is directly exposed to the influence of global and political factors due to high export quotas, which go far beyond the mere question of the buyer’s liquidity.
Whatever the issue, there’s a multitude of risks making comprehensive risk management even more important, as is crisis preparedness for all stakeholders. GrECo is able to provide tailored solutions to help you manage these risks and ensure your success in the face of unprecedented change.
GrECo is the leading advisor to local and global suppliers to the automotive industry, developing proven solutions in risk and insurance management including:
- Identification of the risk from damage to tangible assets.
- Identification of risk from legal and contractual obligations.
- Hedging of liability potential for operational, product liability and recall risks.
- Support in supply chain management including special coverage provisions for the entire value chain.
- Credit and accounts receivable management.
- Special solutions in the areas of D&O, cyber and crime to cover financial losses.
- Development of customized, international insurance programs to ensure uniform coverage worldwide.
As risk specialists, we see ourselves as partners to our clients and our we believe our task goes far beyond insurance management. As a client of GrECo, you will experience, among other things, active support in the underwriting review of your supply contracts, especially with regards to the multitude of contractual obligations particular to the automotive industry which are more far-reaching than the coverage of typical liability insurances. These include warranty extensions; reference market and concept responsibility procedures; responsibility quotas depending on the supplier’s depth of development; liquidated damages; waiver of inspection and complaint obligations; and arbitration proceedings.
Our experts are happy to take a deep look at your contracts. The earlier you involve GrECo, the better we can support you in your day-to-day business. If you send us the drafts before signing the contract, we can provide clarity on insured, non-insured, and insurable components of your supply contracts. On the one hand, this service provides you with an appropriate basis for your contract negotiations with suppliers and customers, and on the other with needs-based hedging concepts for your residual risks.
Related Insights
Andreas Schmitt
Vorstand Risiko- und Versicherungstechnik
T +43 664 962 40 11