Navigating Current Trends in Inland Marine Insurance | Insurance business America
Here’s what you need to be aware of in the room
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From Falvey Insurance
In the complex landscape of business insurance, there is a lesser-known but crucial player: inland marine insurance. While the term might conjure up images of ships sailing vast oceans, its reality is far more grounded and yet just as important. This type of insurance covers overland transportation and offsite storage of property and assets, providing important protection where traditional policies may not be sufficient.
Some current trends impacting the inland shipping market.
Supply chain disruptions:
- Global events continue to show signs of supply chain disruption.
- Delayed deliveries, cargo diversions and increased storage at ports impact risk exposure.
- Insurers must assess the changing risk landscape in relation to their business model due to the complexity of the supply chain.
Increased E-Commerce and Last Mile Delivery:
- The rise in e-commerce has led to increased demand for last-mile delivery services.
- Inland transport insurance covers goods during transport, including the final delivery route.
- Insurers must adapt to changing delivery models and assess the risks associated with urban delivery, such as environmental regulations, congestion taxes, to name a few.
Technology:
- Tracking devices are increasingly being used to track cargo and monitor conditions (e.g. routes, temperature, humidity).
- Insurers need to understand and protect against the risks associated with enabling cargo tracking in transit and in storage and on-site facilities.
Climate change and natural disasters:
Infrastructure investments and modernization:
- Investments in ports, bridges and roads lead to an increase in the required coverage in the construction sector.
- Insurers need to assess the impact of infrastructure changes on risk profiles.
Cybersecurity risks:
- As digital systems become an integral part of modern business, cyber threats are increasing and can cause business disruption.
- Inland marine insurance should consider cyber risks related to tracking, communications and data breaches.
inflation
- Has increased many factors such as damage costs and repairs.
- The increase in demand due to climate events is causing delays in materials and deliveries as well as a reduction in the workforce.
- Insurers must carefully consider the impact of today’s costs of repairing and replacing damaged insured items to obtain the appropriate insured values for the premium.
Change in the workforce
- The pandemic caused people to reevaluate their priorities and career choices.
- Many employees left their jobs and either moved to another company or even changed industries entirely.
- The aging workforce and large pensions are leading to many experienced professionals retiring and creating a talent gap.
- Compared to other sectors, insurance experienced a higher turnover rate.
Legal and regulatory changes
- New regulations impact the transportation and construction sectors.
- Insurers must stay informed about legal developments and adapt insurance coverage accordingly.
Inland transportation insurance is a cornerstone in protecting businesses from the uncertainties of transportation and offsite storage. Its flexible coverage and broad terms make it essential for industries from construction to technology and beyond. As businesses grapple with the complexities of today’s market, purchasing comprehensive insurance like inland marine insurance is not just a choice, but a necessity. At Falvey Insurance Group, we understand the importance of tailored solutions and exceptional service. With a commitment to excellence and a range of value-added services, we are ready to partner with businesses and provide them with peace of mind and protection every step of the way. Choose Falvey Insurance Group for your insurance needs and experience the difference firsthand.
Find out more about the area of inland shipping insurance in this white paper.
About Falvey Insurance Group
Falvey Insurance Group is a multi-solution group distinguished by its robust product offering that goes beyond premium insurance to provide customers and broker partners with a range of value-added services at no additional cost. Our decades-long commitment to excellence has earned us a reputation for exceeding our customers’ expectations and putting their needs first. A brokerage agreement with Falvey gives you access to our comprehensive product range and a seamless claims processing and loss control experience, supported by our world-class service from each of our underwriting teams. Learn more about Falvey at falveyinsurancegroup.com.
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2024-07-03 04:00:00
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