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A review of Insurance along the supply chain Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia Bryan Rettmann, Speaker Existence of New.

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Presentation on theme: "A review of Insurance along the supply chain Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia Bryan Rettmann, Speaker Existence of New."— Presentation transcript:

1 A review of Insurance along the supply chain Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia Bryan Rettmann, Speaker Existence of New Niches in Market?

2 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 2 Global Reach, Local Service Product Evolution In The Supply Chain For Shippers For Logistics Operators

3 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 3 Historical Perspective Supply Chain Discussions Were Fairly Simple How to move goods from point A-B What was the optimal inventory level to assure ample supply Evolution of Just in Time Inventory Shift to Global Sourcing / Manufacturing Cost savings Strategic: Proximity to customers

4 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 4 Changing Role of Logistics Operators Continued Outsourcing Of Logistics Operations Logistics Firms Have Expanded Roles Ocean /Air / Ground / Rail transport Customs Brokerage Warehouse / Distribution /Inventory Management Returns and recycling Contract manufacturing and packaging Trade Finance Licensed, standalone insurance agencies Third Party Claims administrators / Recovery agents

5 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 5 Product Evolution - Cargo Owners Stock Throughput Combined Property / Cargo ALOP / DSU – Project Cargo Supply Chain Interruption

6 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 6 Stock Throughput Stock insurance combines transit (ocean and inland cargo) with "static location" coverage, insuring owned goods in both storage and transit by sea, air, or land most anywhere in the world. Highlights More inclusive than Cargo Policy Eliminates gaps in cover in a property policy Can cover an assureds' goods, materials, finished items in transit to the final point of sale (retail locations) May Require local Policies on a multinational program

7 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 7 Combined Property / Cargo Combines Cover for real property and Cargo Insurance. Highlights Combines all the elements of a stock through put policy. Includes Business Interruption for static risks Includes Real property Furniture and fixtures Form can be simplified, streamlined and more easily understood. No gaps in cover. One renewal, one form, reduced transaction costs.

8 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 8 Designed for construction contractors, energy companies, major manufacturers, or any entity with insurable interest in a major infrastructure project, a Cargo/DSU policy form provides: Cargo coverage for infrastructure equipment and materials from factory to project site. Advanced Loss of Profit (ALOP) and Delay in Start up (DSU) coverage, which protects customers against financial loss arising from loss or damage to insured critical materials and equipment during transit. ALOP /DSU Infrastructure Projects

9 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 9 Definition of Critical Item: All equipment, plant and materials which, in the event of total loss during transit, cannot be manufactured, replaced, shipped, installed, tested and commissioned within 3 months, or which cannot be repaired at the destination, or which the unit price in excess of USD2 million and be shipped in breakbulk. MLCE IS KEY

10 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 10 Supply Chain Interruption All risk enhanced contingent business interruption coverage form for supply chain exposures. Property Insurance generally excludes BI unless there is physical loss or Damage Supply Chain Interruption requires an upfront assesment of the supply chain and covers virtually all perils for named suppliers. Political risk,

11 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 11 Logistics Operators Liability Covers Freight Services Liability / Errors & omissions Enhanced liability contracts (Bespoke) Port and Terminals Package Terminal Operators Liability

12 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 12 Freight Services Liability An Integrated Liability Solution covering … Liliability under contract, international convention, mandatory national law, etc. for loss of or damage to or the delay in delivery of Customer Goods arising in the ordinary course of providing Insured Services, and Liability in respect of claims made against you for breach of professional duty arising from an inadvertent error or omission committed in good faith (clerical errors, provision of incorrect advice or information, faulty arrangements and failure to comply with or provide instructions) Insured Services – When the Insured undertake to transport, store and handle customers goods for reward in the capacity of Freight forwarder (land, air, sea) Contract carrier (land, air, sea) Road Haulier Warehouse keeper Customs Brokerage 3 PL / 4PL

13 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 13 Enhanced liability contracts Growing Trend of Companies contractually shifting risk of loss or damage to Logistics Providers Coverage for a logistics company for liability assumed in a customers contract above and beyond their normal terms and conditions. Allows for companies to bid competitively on non-standard contracts

14 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 14 Ports & Terminals Packages Highlights: Combines liabilities, physical damage and business interruption coverages. Port /Terminal Operators liability Equipment Property Business Interruption

15 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 15 Terminal Operators Liability This form provides liability insurance for damage to cargo while its in a terminal operators care, custody and control

16 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 16 Logistics: Growing Insurance Distribution Products to sell to Logistics client base Shippers Interest Programs Licensed as stand alone Insurance Agency Licensed Claims Third Party administrators and recovery agents

17 Second IberoAmerican Symposium of Marine Insurance Bogota, Colombia 17 How to adapt these product offerings in local Markets? SCALE Establishment of forms in local market, and regulatory acceptance Talent: Understanding of the underwriting discipline and trained staff Support of Loss Control Expertise Client Education!


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