Cargo & Liability insurance: How to ride the tightrope
Cargo insurance is the oldest type of insurance in existence, yet it’s often the least understood. Whether you are a transportation intermediary or a shipper, here are some cargo insurance buying tips from the unique perspective of an insurance insider.
in the NewsMajor changes in air cargo freighter market driven by e-commerce, reports consultancy Maersk Line’s acquisition of Hamburg Süd gets sales and purchase agreement approval AAR reports mixed carload and intermodal volumes for week ending April 22 BTS reports February gain in U.S.-NAFTA trade U.S. ports may face difficult financing decisions, says Fitch Ratings More News
Do insurance underwriters rely on methodology and science to determine pricing or do they just pull numbers out of their hat? Actually, applying a rate to a risk is a combination of both.
Contrary to traditional lines of insurance, marine insurance does not rely on company published rate guides or state filed rates. Pricing is typically based on an insured’s loss experience, the relative risk, type of commodity, and geography. But at its core, pricing is ultimately based on the insurance company’s level of comfort with you and the risk.
So, if you want better pricing, work with your insurance provider to help make the underwriter feel as comfortable as possible with the risk.
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