Cargo Insurance
 The effective management of transportation risks requires close attention to a number of elements.
Pure insurance broking is simply insufficient - active investigation of the following areas is essential in order to understand the cargo transportation industry and the risks involved:
* contractual relationships and the allocation of responsibilities - to ensure that either the freight operator or the cargo owner pays the insurance premium – this follows the principle of one premium for one risk;
* risk financing mechanisms - whereby the premium is split between self-insurance and traditional insurance facilities, allowing the client to earn interest, accumulate surplus and formally fund commercial settlements;
* packing methodologies - to advise the freight operator on the best packing practices in order to reduce the risk of damage to the cargo;
* transport logistics - to provide in-depth analyses of clients transportation and distribution profiles in order to reduce potential risks and the cost of insurance;
* loss analysis - interpreting statistical data in order to identify and reduce potential risks through the application of effective risk control measures;
* the application and monitoring of risk control measures;
* the assessment and monitoring of the overall cost of risk; and
* the provision of performance statistics that may be utilised as management tools.
Greenwoods as advisors, has a well-grounded understanding of the above areas in the cargo transportation industry, it is possible to identify potential risks and control them. Initially the risks are reduced as far as possible in practical ways (such as packing the cargo more securely).
Thereafter the risks are controlled financially through a combination of traditional insurance broking and risk financing mechanisms. It is in this way that Greenwoods provides clients with the most cost-effective risk management solutions.
Having a client base that consists of cargo owners on the one hand and freight operators on the other, Greenwoods is structured in such a manner as to provide specific delivery systems and staff in support of the divergent servicing requirements.
Sophisticated computer systems link the Greenwoods' units in Athens. Clients thus benefit from the uniformity in approach, standards and servicing at regional levels, in addition to the advantages of centralised management controls. These systems, furthermore, facilitate the production of reliable and accurate statistics – the cornerstone of effective risk management programmes.
Greenwoods offer specialist knowledge of the Freight Industry, having served leaders in this sector for more than twenty-five years.
Greenwoods have considerable expertise in arranging risk-financing packages, both in their structure and management.
As a specific concept:
* risk-financing for Freight Operators enable the cost of risk to be moved off the bottom line, moving away from the traditional acceptance of liability to a product which allows the Freight Operator to offer a full insurance arrangement to their customers.
Tailored packages, developed for each Freight Operator, provide:
* risk assessment through the analysis of contract conditions and cargo protection mechanisms – ensuring that optimum measures are taken in order to reduce the potential risks faced by the Freight Operator in their freight contracts;
* risk analysis and reporting through the management of comprehensive statistical data;
* Freight Operator facilities – ensuring that, although the Freight Operator is responsible for the collection and payment of the insurance premium, the Cargo Owner participates positively in the adopted risk management programme. This means that both parties concerned are responsible for reducing the potential risks faced in the movement of cargo. Greenwoods then work in conjunction with the Freight Operator in insuring their business to the best possible advantage. This is usually done through a combination of traditional insurance and self-funding; in-house training programmes for the Freight Operator – through these programmes Greenwoods can work with the Freight Operator in implementing the Freight Operator’s facility; reduction in cost of risk for the Freight Operator and ultimately his client through the ability to bulk purchase insurance protection; Greenwoods, clients benefit from the buying power and resources. Greenwoods offer services and products, which make available to businesses involved in the movement of their cargo - whether it be by land, sea or air – and covers the cargo from its point of departure to its final destination.
The responsibilities of the Freight Operator and the Cargo Owner are thus defined at the very outset. The Cargo Owner can rest assured that, with the assistance of Greenwoods, the risk exposure will be totally managed.
In addition to insurance and risk-related products, Greenwoods offers products that are specifically developed to provide clients with solutions to their logistical problems.
Greenwoods offer a specialised risk related product, structured on recommendations and solutions, to assist clients with their distribution requirements and costs. In assessing the client’s logistical profile by way of analysis.
Takis Kalogerakos
Marine Underwriter |
