With a manufacturing process that involves a global supply chain, automaker Ford has had layers of CBI coverage in place for years. The importance of that coverage, structured by Marsh, became apparent after the Japanese earthquake and tsunami. Although Ford can’t comment on total claim payments, simply evaluating the magnitude of the loss took in excess of six months as the company worked to create alternate sourcing arrangements. 

Following the losses that hit the automotive industry, Ford also saw a reduction in limits, increasing its effective retention. “The market didn’t react significantly to Japan at first, but with Thailand following closely, there was a significant restriction in coverage,” reports Daniel M. Ames, the company’s associate director of corporate insurance.  

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