Vulnerable supply chains and dependence on technology underscore the need to maintain business continuity and quickly recover amid increasingly frequent catastrophes. Insurance providers—and the companies they serve—have heightened awareness, and disaster preparedness is no longer just check the box. 

"Cat-type events are coming fast and furious, so you have to be ready for that," said Karen Furtado, partner at research and analysis firm Strategy Meets Action. "People are taking it much more seriously. Any type of risk management planning has gotten much higher exposure than ever before—in business in general, not just in insurance. Insurance companies have chief risk officers, focused on what's their business risk. How they manage disaster risks now is much different. Auditors are escalating these issues to the audit committee."

The complexity and interdependence of the global economy increase the risk faced by companies of all types and sizes. Even when catastrophe does not directly impact a business, if its key suppliers or customers are hit with calamity, then the business still is under threat. Dependence on technology exacerbates the risk. "Our technology environment has become ever more complex, so businesses always must be planning for other types of disasters—not just weather cats, but data breaches and other man-made disasters," Furtado said.