PHARMACEUTICALS AND CHEMISTRY
With its developing economy, large domestic market, advanced infrastructure, qualified and competitive workforce and investor-friendly legislation, Turkey enables manufacturers operating in the pharmaceutical and chemical industry to operate profitably for many years in one of the promising and developing countries of the world.
With its advanced infrastructure, large domestic market, competitive workforce, and investor-friendly environment, Türkiye offers an attractive and profitable investment climate for companies operating in the pharmaceutical and chemical industries.
As one of the leading emerging economies in terms of global chemical product sales, Türkiye stands out with its strong growth momentum and low production costs, serving as a regional manufacturing and export hub for many global brands.
At NART Insurance and Reinsurance Brokerage, we provide tailored insurance solutions to leading organizations in this strategic sector, continuously updating risk analyses at both local and international levels to ensure a secure business environment.
Exponential growth in science and technology, coupled with insufficient R&D funding in sectors unable to generate capital
Negative impacts of the COVID-19 pandemic, particularly on supply chains
Fiscal austerity measures implemented by the public sector, the largest buyer
Increasing global competitiveness in manufacturing (e.g., higher capacity utilization, lower input costs)
Instability in pharmaceutical pricing and related policies
Fire risk
Occupational diseases
Risks arising from hazardous chemicals
As Nart Insurance and Reinsurance Brokerage, our specialized risk advisory team provides the necessary resources and operational services to help safeguard the risks you face.
Key industry risks and our primary areas of work in addressing them include:
Natural disasters and fires
Contractual liabilities
Clinical trials
Directors’ and officers’ liability risks
Occupational health and safety
Environmental risks
Machinery breakdown and electronic equipment
Business interruption
Strikes, lockouts, and terrorism
Product liability and recalls
Employee liabilities
Supply chain and raw material risks
Credit risks
Cyber risks
Facilities, suppliers, and end-users located in regions exposed to severe weather events around the globe face numerous threats. For chemical companies, the following primary risk areas are of particular concern:
Assets:
Significant losses in the industry are typically associated with risks such as physical damage to facilities and buildings; fires, explosions, vapor cloud explosions (VCEs); machinery breakdowns; natural disasters (hurricanes, high winds, storm surges, floods); and disruptions to supply chains and business continuity.
Liabilities:
These risks include third-party bodily injury and property damage involving facilities and vehicles. Other related exposures include product liability and recalls, transportation risks, environmental liabilities, and employee safety/occupational injuries.
Cybersecurity and Criminal Activity:
Malicious digital attacks or actions by unidentified employees, contractors, or suppliers can lead to data theft and operational disruptions. This also encompasses the accidental release of hazardous materials. Controls addressing both areas of vulnerability are a critical component of risk management in the chemical industry.
When working with hazardous materials and sensitive data, it is essential to consider all three of these threats to support a comprehensive approach to risk management. Detecting and addressing emerging threats helps mitigate the financial, operational, and human impacts associated with such adverse events.
Because chemical companies are exposed to a wide range of risks, they often adopt various policies and risk transfer strategies to protect their assets and minimize potential losses. Some key options to address the industry’s major risk exposures include:
Property Insurance:
Provides coverage for property damage and business interruption resulting from natural disasters, severe weather events, and other catastrophic incidents.
Casualty Insurance:
Covers areas such as workers’ compensation or equivalent benefits, general/product liability, auto liability/physical damage, and environmental liability.
Cyber Risk Insurance:
Covers various costs associated with losses stemming from cyberattacks. Depending on policy terms, coverage can be broad and comprehensive.
At NART, we leverage our data and analytics tools to assess and quantify your company’s unique risk exposures. From there, we design a risk management program to help safeguard your organization against potential threats or losses.
By partnering with NART, you will gain insights into your exposure levels and be able to implement appropriate risk mitigation and transfer strategies.
