This past weekend, New Zealand's Nelson-Tasman region got absolutely hammered by flooding, while Air India Flight 171's crash continues to expose dangerous cracks in our global aviation system. From insurance markets collapsing to aircraft fleets grounded by parts shortages, we examine how critical infrastructure failures create cascading risks for businesses worldwide.
Episode Highlights
Nelson-Tasman Weekend Disaster: June 28-29 flooding killed one person and generated 373+ insurance claims worth millions, representing another nail in New Zealand's collapsing insurance market
Air India Flight 171 Catastrophe: Boeing 787 Dreamliner's first fatal crash killed 241 people, exposing systemic vulnerabilities in global aviation supply chains and triggering 10-30% insurance premium increases worldwide
Insurance Market Transformation: New Zealand's claims exploded from $17 million annually in the 1990s to $3.5 billion in 2023, with IAG stopping policies on 20,000 flood-prone homes
Global Aviation Crisis: 160 aircraft (25% of India's fleet) remain grounded due to parts shortages, while component lead times doubled from 18 to 30 weeks amid the worst supply chain crisis since WWII
Business Adaptation Strategies: Practical mitigation steps including parametric insurance, supply chain diversification, and operational flexibility planning for companies facing these escalating risks
Resources & Further Reading
Aviation Story - Air India Flight 171:
Air India crash is the latest test for new Boeing leadership | Reuters | June 12, 2025
Air India crash: What to know about the first fatal Boeing Dreamliner tragedy | CNBC | June 12, 2025
Indian authorities begin investigating Air India crash in which 1 passenger survived | NPR | June 13, 2025
Air India crash risks fueling up to 30% jump in airline insurance premia | Business Standard | June 23, 2025
Insurance Story - New Zealand Climate Crisis:
Australian, New Zealand property markets face creeping climate risks | Reuters | July 1, 2024
Tasman, Nelson to prepare for more heavy rain following flooding | RNZ | June 30, 2025
2023 climate disaster payouts top $2 billion | Insurance Council of New Zealand | February 28, 2024
Where homeowners insurance costs are rising the most โ and how Trump's tariffs could make them worse | MarketWatch | April 8, 2025
Host: Ollie Law, Editor-in-ChiefDuration: Approximately 15 minutesCategories: Technological, Environmental, Economic
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