Steve Parker, director general of the British International Freight Association (BIFA) joined Marcus Baker, global head of marine, cargo and Logistics at Marsh to deliver the opening address at the Cargo Insurance London conference.
Addressing the reasons behind, and problems caused, by under or uninsured cargoes, Parker and Baker focused on the amount of cargo premium available globally, and explored whether there is an opportunity that the insurance market is currently missing.
Both agreed that the insurance sector needs to simplify the process for clients in regards to both placement and claims for cargo insurance, so that everyone can win.
Parker said: “During the 50 years I have been in this industry, one of the things that has always surprised me, is the amount of freight that moves globally without insurance.”
He added “BIFA is contacted regularly by the trade association’s members when something untoward has happened to a consignment.
“Most often it is one of our small to mid-sized corporate members, which might not have the resources to incorporate an insurance offer into the freight cost. Typically, they say that the process is too complicated and long-winded for what is a small return.
“The majority of BIFA’s 1800 corporate members have fewer than 10 staff. BIFA stands ready to work with the insurance sector to address this issue and make the process to obtain transit insurance less cumbersome. We need a system that makes it easy for insurance cover to be included in the freight rate offered and the customer has to opt out rather than opt in. BIFA wants to see cargo insurance become the norm, not the exception.”
Both presenters agreed that everyone benefits if the use of cargo insurance can be increased.
Parker concludes: “The trader gets the cover they need. Our member has the comfort of knowing in the event of an issue, that the goods are insured. The insurance industry receives more business.”
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