Make cargo insurance easier, say freight bosses

Speaking at the Cargo Insurance London conference, Steve Parker, director general of the British International Freight Association (BIFA) and Marcus Baker, global head of marine, cargo and logistics at Marsh discussed the reasons behind, and problems caused by, under or uninsured cargo.

“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,” said Parker.

Small to mid-sized clients, which may not factor a dedicated insurance offer into the freight cost, particularly struggle, says Parker.

“Typically, they say that the process is too complicated and long-winded for what is a small return,” he said.

With the majority of BIFA’s 1,800 corporate members having fewer than ten staff, this is a common problem and an opportunity for the sector to make the process to obtain insurance less onerous.

“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,” he said. “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.

“The trader gets the cover they need. The insurance industry receives more business,” concluded Parker.