Large corporations are facing a complex web of emerging risks, from global supply chain disruptions to capacity shortages in casualty insurance.
Specialists shared key insights into what their corporate clients are most concerned about, and how brokers can step in to support them during this period of strain and uncertainty.
According to Jeff Cole (pictured directly below), AVP of national accounts at Sentry Insurance, the most pressing concern for large corporates right now is the reemergence of supply chain challenges, this time fueled by geopolitical tensions and tariffs rather than pandemic lockdowns.
In Sentry’s latest C-Suite Stress Index, 82% of large business execs report higher stress this year. Supply chain challenges (45%) were among the biggest sources of concern.
“During COVID, the disruption was both domestic and international,” Cole said. “Now, it’s mainly cross-border, triggered by tariff activity.”
Tariffs have driven up the cost of imported goods and components, and companies reliant on overseas manufacturing are feeling the pinch.
Domestically, the issue has morphed into a logistics and labor problem. Businesses can’t find enough reliable transportation, which has led over 90% of companies surveyed to increase or initiate the use of company-employed drivers.
“A lot of large US companies rely on goods or components from overseas. The issue is shifting toward finding drivers, moving product,” Cole said. “They simply can’t find reliable ways to move their products.”
Labor shortages are compounding the issue. In the manufacturing sector, nearly 60% of companies surveyed by Sentry expect to either stay flat or contract in the coming year. For Cole, it’s an unprecedented response that reflects just how uncertain the future feels.
“Shrinking isn’t a common business strategy, but it’s happening,” said Cole. “And it speaks volumes about how corporate leaders are feeling.”
Casualty insurance has become another pain point. Martin Neuhaus (pictured directly below below), president of facultative and corporate at
Munich Re North America, said that a dramatic shortage of capacity is making program placements difficult for brokers and clients alike.
“Many May 1 casualty renewals were delayed or finalized at the last minute because of limited capacity,” Neuhaus explained. “Where companies once had access to $25 million in limits, they’re now seeing $10 million, even as low as $3-5 million in some cases.”
The driving force behind the shrinking availability? Record-setting jury awards and a steady increase in claims severity.
Marsh, citing data from Marathon Strategies, reported that US juries awarded more than $14.5 billion in so-called “
nuclear verdicts” (awards above $10 million) in 2023, representing a 15-year high.
Additionally, commercial auto continues to weigh on casualty portfolios. “It’s been a loss-making line for more than a decade, despite multiple rounds of rate hikes and re-underwriting,” said Neuhaus.
Beyond the specific insurance challenges, broad economic uncertainty is shaking the confidence of corporate leaders. In Sentry’s recent survey, nearly 40% of executives identified macroeconomic unpredictability as a top concern, while 34% cited inflation.
These pressures are pushing companies to be more cautious with their financial planning. Large corporations want their insurance coverage to work harder, according to Sentry.
“Just over half—51%—are planning to increase their insurance purchases,” Cole said. “But they’re doing it by sharing more risk. So, that means higher deductibles, alternative risk transfer strategies, that sort of thing. Others are looking for broader coverage. Overall, it’s not slowing down their insurance buying, just changing how they’re structuring it.”
The impact of inflation is especially evident in the workers’ compensation space. While claim frequency has been declining for over a decade, severity has been on the rise. Medical inflation is the top driver, according to Cole, as rising salaries for nurses and healthcare professionals, coupled with drug cost inflation, make claims more expensive.
This environment has led to a renewed focus on safety. “Even if companies aren’t hiring, they’re asking more of the workers they already have. That’s why 99% of the companies we surveyed said they plan to increase their safety budgets in the coming year,” said Cole.
“They simply can’t afford workplace injuries, financially or operationally.”
With so many moving parts, the role of the broker has become more critical than ever. Both Munich Re and Sentry agree: brokers must be strategic partners who can fill gaps, manage uncertainty, and help clients make informed trade-offs.
Neuhaus emphasized Munich Re’s commitment to flexibility and responsiveness. “We have a flat organization and a small team that can make local decisions quickly,” Neuhaus said. “That allows us to step in when brokers lose capacity and need to reconfigure a placement last minute.”
Cole, too, underscored the broker’s role in helping companies think creatively about risk transfer and safety. “When 55% of businesses say they expect their employees to do more next year, brokers need to be asking the right questions about safety protocols, about workers’ comp structure, and about how to manage claim severity,” Cole said.
In the face of tightening capacity, economic volatility, and workforce pressure, companies are doubling down on what they can control: risk management, employee safety, and strategic insurance partnerships.
“Out of 1,000 major US companies, 600 are expecting no growth or contraction,” Cole said. “That’s not business as usual. But it doesn’t mean they’re standing still: assessing, refocusing, and reallocating.”
