Technology helps mitigate insurers’ losses

Ongoing regulatory transformation of the insurance industry is creating greater accountability, according to Horizon Underwriting Managers director, Mike Brews. And he believes the bedding down and understanding of the regulatory changes will have a positive effect on the way the industry is viewed, instilling greater consumer trust. Brews said over the past 20 years international trade had become easier, with markets such as China opening up to the world as a supplier of goods. “This has enabled a massive increase in shipments and volumes around the world. As a result, container vessels are getting bigger and bigger to accommodate these volumes and these larger vessels have drastically increased insurers’ exposure. Managing these risks is becoming more challenging as volumes grow,” he said. Technology is however increasingly playing a role. “If something does go wrong, the speed of information allows us to take immediate action and minimise the damage these losses have on our business.” For the freight industry, his advice is simple. “Use reputable suppliers – and that goes for broker, underwriter, clearing and forwarding agent and shipping line first and foremost. Also, understand the risks you face and make sure they are adequately insured,” he said. “Act as if uninsured – insurers are there to help clients through catastrophic events so clients should manage their risks as if they are paying for losses.” But most importantly, said Brews, is to read the policy. This helps cargo owners understand the risks covered and those risks not covered.”