Insurance companies are making progress in educating their clients about the benefits of risk control measures in terms of lower premiums, says Associated Marine chief operating officer Mike Brews. “You’ll often find that a simple installation of a tracking device, which may cost no more than R100 a month, can reduce premiums considerably.” And that’s where a company’s experience and knowledge in the movement of cargo plays a key role. “We often advise our clients on how to minimise risk more effectively and efficiently - but a lot of risk mitigation is done through their own risk control measures like bringing in security guards, regular maintenance of vehicles, tracking devices and the like. “When it gets to a point where it’s not economical or there are things outside their control, they transfer that risk and that’s what attracts a premium. In some cases we will institute warranties on our policies that require risk control measures to be in place – like armed guards or tracker systems.” Consulting with the client and sharing expertise plays a big role, says Brews. “For example, to put a sprinkler system throughout a warehouse can be extremely expensive and in some cases it does more damage to cargo than the actual fire would. Which is why we send external surveyors and assessors to assist us in the best route to follow – whether it’s water sprinkler systems or CO2 gases which may be more expensive to install and maintain but cause less damage to the cargo. “Effectively we’re helping the client to run his business efficiently by advising on the best risk control measures to smooth the logistics f low.” The education process is ongoing, says Brews, and clients who take the advice on board reap the benefits in reduced premiums. INSERT & CAPTION We send external surveyors and assessors to assist us in the best route to follow. – Mike Brews
