In their 2011 report, Willis Global Marine, part of Willis Group Holdings, reported that their cargo clients “continue to enjoy the benefits of a soft market, with reductions in both premium and deductibles and increases in limits at little or no additional cost.” New players in the marketplace have also contributed to keeping rates low, despite the increase in value and losses of cargo to regions of the world not previously seeing higher value shipments (say, between $500K and $1 million).
The losses that Willis calculated do not include things like catastrophes due to natural disasters like Australia’s floods or Japan’s earthquake and tsunami or pirate attacks. With regards to pirate attacks, the insurer said that these have moved from small opportunistic groups to “more highly organized crime organizations,” and cited the significant increase in demanded ransom payment amounts.
Cargo insurance is something that no shipper should be without due to the limitations of liability applied by all operators throughout the supply chain. We suggest that importers and exporters speak with their Customs brokers and freight forwarders about their insurance needs and make sure that they are working with a reputable firm within the space.
Willis provided a list in their report of some of the top ten reported incidents in the past 12 months to Lloyd’s of London’s claims agency that is reflected above.