In addition to the theft of cargo, a constant these days, accidents with loss of human lives and equity justify the hiring of insurance.
It is impossible to talk about the importance of insurance in the area of logistics by simply addressing the current situation. The need to mitigate and transfer risks in freight transport has also been the driving force behind the birth of Lloyds’ insurance product and market. Such is the importance of this, Lloyds maintains in its main hall log book of accidents with freight vessels hundreds of years ago. As in the past, today, even with all the technological advances, there is the fear of loss and the need to dilute the risk of losses of the goods transported. According to Caio Timbó, director of LTSeg (Phone: 11 3053.3050), the logistics chain management encompasses not only timely transportation activities, but also includes managing, through contracts and procedures, the risks of the main suppliers of a production process – supplier suppliers, internal processes, insurance policy, etc.Sergio Caron, transport superintendent for Marsh Brazil (Phone: 11 3741.1441), also talks about the importance of insurance in the area of logistics nowadays. This is an essential element to support the continuity of logistics, says Caron. It protects the property of the owner of the cargo, as well as, in another way, protects the third party liability, acting during the displacement of the most varied loads and in the most varied transport modalities, regions, etc. The risks are always present in every moment of logistics, to a greater or lesser extent and predictability. At this point, insurance exists to support the business of companies, repairing the most diverse incidental and recurring losses and losses in logistics and cargo transportation, whether national or international. “It is worth noting that Brazilian insurers, in the year of 2016, with a cut for companies that have regular insurance for their logistics, participated in more than R $ 1.5 billion of losses in damaged cargo, “says Marsh Brazil’s transportation superintendent. For his part, Valnei Moreira, technical director of Ownit Corretora de Seguros (Phone: 11 2372.1365), remembers that the professional of logistics has the objective to guarantee the delivery of its products with agility and quality, to overcome challenges with transportation, storage and reduced costs. This professional must also take into account the costs of insurance and the contracting of a policy appropriate to his activity. “The contracting of insurance adequate to the needs of logistics and storage is of paramount importance, since in the fatality of a loss of insurance and the loss of insurance may lead to catastrophic losses that go beyond financial losses, such as difficulties in the continuity of the company and loss of the market. In addition to hiring appropriate policies for the characteristics of the logistics segment, the Technical Director of Ownit continues, “we need to understand and put into practice Risk Management, with loss prevention programs, contingency planning and risk management. crises.Adailton de Oliveira Dias, Director of Transportation, Claims and Strategic Planning at Sompo S (Fone: 11 3156.2990), completes this analysis saying that contracting insurance in the logistics segment is crucial these days, for two reasons. The first is that there is a legal obligation, which provides for very significant fines, if not fulfilled. The second is that burglary rates have already reached alarming levels. There are more than 52 loads stolen a day in the country. “In other words, this situation goes beyond the sector. This is because these indexes not only compromise the financial health of agents in the sector, but also have a strong impact on the so-called Brazilian Cost. With this, the whole society is paying the insecurity account in the streets and Brazilian roads, “says Dias.
It is precisely the “cargo theft” factor that determines one of the trends in the insurance segment. At least in the view of Caron, Marsh Brazil. He informs that, due to the intensity of cargo theft activity in Brazil, insurers have increasingly proposed more robust rules of Risk Management. Therefore, the appropriate investment at the risk scale – depending on the type of product transported, load values, transit regions, schedules etc. – is a marked trend in the sector. And it continues: losses due to accidents with vehicles, which damage loads, require caution. Many roads still do not have an ideal state of preservation, so vehicle maintenance, driver training and an incentive plan are recurrent points of attention in logistics – from the point of view of insurance. Due to the deficit results, some insurers have ceased to operate in this segment or had their portfolios absorbed by other companies. On the other hand, because it is a much more open market in reinsurance, there is a very attractive financial capacity available to be allocated to operations with good risk management, adds Marsh Brazil’s transportation superintendent. insurers operate in this segment and the tendency is for more and more specialized companies, both insurance companies and insurance brokers, to speak the same language as the customer and understand how their business works, thus bringing products that are appropriate to the reality of their business “, complements Moreira, owned by Ownit.Timbó, LTSeg, also understands that the trend in the insurance segment is more and more integrated risk management of the supply chain. “Of course, there is greater power by large corporations to intervene in their suppliers’ policies and procedures, but the globalized world is making safe (and secure) risk transfer procedures considered to be minimum requirements for a company to be eligible to supply raw materials and inputs to a company. This has been a trend in the main economic sectors of the world’s major economic powers, “comments the director of LTSeg. In fact, Rose Matos, manager of Porto Seguro Transportes (Phone: 0800 727.2761), reveals that in 2017, the insurance market transportation goes through a challenging period that inspires new opportunities. In this sense, Porto Seguro Transportes has invested in risk management solutions to circumvent some of the factors that threaten the integrity of cargoes, as well as reinforce the attention at the moment of underwriting a risk. And it has also focused on vehicle and cargo tracking and monitoring technologies that enable real-time travel monitoring and immediate action when needed. A strong trend in the segment is the increase in intelligence and risk management services, in order to avoid the occurrence of claims – adds Dias, of Sompo Seguros. In this way, he reminds us, insurance becomes one of the components of the prevention service and guarantees for the workability of the logistics agent. “Sompo, for example, advises on the management of risks of cargo transportation to policyholders. For each shipment a strategy is drawn up which includes used tools, routes, schedules and any other resource that can be released by hand to help the cargo reach its destination. But we only work with the necessary resources, thinking about each situation. After all, transporting a load of electronic equipment in the interior of São Paulo is different from a load of medicines that travels in the South Region and also different from a load of grain circulating in the Midwest.
Who else does insurance?
Timbó, from LTSeg, says no, since the construction of a company’s insurance policy takes innumerable aspects, ranging from past experiences with claims to institutionalized internal procedures. “In this context, it makes sense to explain that, in the case of a logistics chain, it is understood the transport of inputs and products between suppliers and customers of a particular company that is crucial to any operation.” Thus, continues the director of LTSeg, in the process of logistics, the policies are essentially of the same type, transport insurance and RC insurance of the carrier (with its particularities), being extremely important for the risk underwriting the modal of transportation, be it road, rail, waterway or air. There are much bolder insurance products that blend cargo coverage with the loss of future revenue from the venture, and the choice for this type of product should be taken into account when it comes to the transportation of critical equipment that will be deployed or used in construction As the management of the logistics chain deals with risks in all stages of the process – Timbó completes -, there are, of course, the risks of the operation of each of the companies that compose the final product, however discussing these insurance will open a range of products and exposures at risk, in this way, generically speaking, we can cite as main insurance the Operational Risks, Civil Liability Operations and all the insurance that involve the transportation of materials, safeguarding its peculiarities. ” that fire insurance for legal entities is compulsory under the Civil Code, for Not all companies are able to take out an insurance policy, either because of the constructive characteristics of the building where they are installed or because of the deficient fire protection systems, such as fire extinguishers, hydrants, etc. An example of this is the refrigerated warehouses that, because they have isopenones in their construction, have difficulties in contracting insurance, since this material is of the fuel type and, for that, it is necessary that the warehouse has a very well prepared Risk Management plan .Rose, Porto Seguro Transportes, reminds us that the cargo transportation segment is responsible for the largest number of insurance contractors in the area. This is because, according to the manager of Porto Seguro Transportes, besides the contracting of this type of insurance is mandatory and provided for by law (Decree 61867/67), the businessman in this area of action aims to provide peace of mind and satisfaction to those who contract their transportation services .E Dias, from Sompo Seguros, completes this subject highlighting that pharmaceuticals, cosmetics, consumer electronics and foodstuffs are some of the segments that most demand insurance contracting. “We also noticed an increase in contracting for cargoes of agribusiness products.” The most targeted cargoes are food and beverages, cigarettes, electronic products, medicines and car parts. The loads of electronics, pharmaceuticals and cigarettes are fired, the most targeted. In the case of consumer electronics and pharmaceuticals, they are high value-added products that can yield a lot in a single action of theft. Cigarettes are products of easy liquidity. That is, the product of a robbery is on the market at the disposal of the final consumer.
To the question “how to decide on the choice of insurance? What to consider? “, Timbó of LTSeg points out that the decision-making process for a certain type of insurance should not evade the legal obligations pertaining to the transport operation, but the insurance policy can be much more robust and comprehensive that the law stipulates only the obligation of contracting. Consideration should be given to the importance of the items to be transported, how they (or their lack) can impact the production chain, how much replacement time in case of loss of these items and what the potential impact on the operation as a whole losses of these items can cause. “I take this point to raise the case recently with the automaker VW, which had the production line of the Passat automobile in Germany completely cut off for four days because of a fire in the factory of its carrier, gloves in the Czech Republic. Facts such as this show that, regardless of the size of the companies, the logistics chain management is vital to the operation, “comments the director of LTSeg. From a technical point of view, transportation insurance is one of the most complex. Therefore, it is essential that the consultancy is provided by an insurance broker with full experience in this segment. According to Caron, Marsh Brazil, several conditions must be considered in decision making. The price (fee) is always a factor to be considered, but it should not be the only factor taken into account. “It is essential that the entire logistics chain be fully detailed and explained by the customer so that the insurance broker can have the elements of analysis at hand. Based on the operations performed and detailed, it is necessary to verify if the insurance proposals offered by the insurers support the different particularities of each logistic operation. Often, these proposals need to be adjusted and some clauses are configured to meet the specific demand of a particular customer. Another very important aspect to weigh at the time of analysis is the requirements and recommendations on Risk Management, since they have a direct impact on the costs involved. “Marsh Brazil’s transportation superintendent also points out that aggregate services, quality of service providers, deadlines for the payment of claims and automaticity / capacity of the contracts of the insurers that operate in this sector are also equally relevant factors in the decision of the insurer. Unlike other types of insurance, transportation insurance requires customer-broker interaction over the 365-day term of a policy, Caron says. “Nowadays, insurers are already adding a number of services in order to minimize losses. Measures such as risk management advice, etc. aim to bring more efficiency and optimization of costs, as well as the know-how of specialized professionals. “Continuing, Dias, of Sompo Seguros, says that the contracting of insurance must be done through an insurance broker of the contractor’s trust. He is the specialized consultant who can provide guidance on the products available in the market that are best suited to the needs of the shipper or the carrier. The products offered and the respective insurers must be duly registered with SUSEP – Superintendência de Seguros Privados, which is the autarchy subordinated to the Ministry of Finance responsible for the regulation and supervision of the insurance sector. “Make sure the chosen insurer is a company with a tradition in the market and if it has a specialized team to meet the specific demands of its activity, which are much more complex than observed in other insurance lines and require constant procedures for account of the daily transport volume, which requires emissions such as ‘bill of lading’, etc. “, adds the director of Sompo Seguros.Rose, of Porto Seguro Transportes, also advises, when choosing a transport insurance, to observe the quality and quantity of services provided by the insurer, since these must, fundamentally, make the workflows agile and simple, besides reducing rework and costs for the contracting company. Finally, it should be noted that the conditions and coverage offered are compatible with the needs of the operation.
Who should take the insurance?
legal tender, the carrier must take out third-party liability insurance when carrying out such transportation. The owner of the cargo (shipper) must have a damage insurance, which includes, fortuitously and force majeure – since these elements exclude civil liability of the transporter within the national territory. “However, regardless of the issues it is highly recommended that all parties contract their insurance adequately and that they examine their particularities, “says Marsh Brazil’s transportation superintendent. Ownit’s Mineira also says that everyone should take out insurance: the company, to ensure its assets, third party assets and civil liability, the carrier, through the compulsory insurance of the road transport operator, and the Logistic Operator, in order to guarantee their interests. For the technical director, everyone wins by hiring insurance, as each one is responsible for part of the operation. Rosário, from Porto Seguro Transportes, concludes, emphasizing that, in general, transportation insurance offers protection against accidents, thefts and deviations of merchandise and help to avoid damages and damages that affect not only the Shipper (owner of the merchandise), but the others involved in the operation. For this reason, in addition to the Shipper, this type of insurance must be contracted by the Logistic Operator and the Road Carrier.