About This Report iii

Summary v

Figures and Table vii

Managing Systemic Supply Chain Risk to the U.S. Economy from Trade Concentration and Geopolitical Conflict: The Roles of Insurance and Other Hedging Strategies 1

The Recent Past: Economic Risks Revealed by Tensions with China and Wars in the Red Sea and Ukraine 3

Systemic Risks from Trade Concentration and Conflict Exist Beyond Recent Events 8

Protective and Compensation Strategies for Risk Management 11

Private Sector Actions Exist but Are Insufficient for Addressing Systemic Risk 12

Public Options for Managing Supply Chain Risk are Essential, But Can Have Complex, Unanticipated Effects 16

Harnessing Private Interest to Promote Systemic Supply Chain Resilience 19

Conclusions and Recommendations 22

Appendix A: Quantitative Methodology 25

Appendix B. Summary of Interview Themes 27

Abbreviations 33

Bibliography 34