How to navigate global trade risks
If Insurance
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Nordic companies continue to expand their operations into new territories. When branching out, it is vital to grasp the risks and mitigate these effectively with a strategic approach and in an effective manner.
Companies must anticipate all the many types of challenges they face when entering less familiar markets. Taking cargo as an example, occasionally significant investments are allocated to areas with extreme weather conditions. This can impact the feasibility of transportation during certain seasons or over certain terrains, such as ice or flooded roads.
Furthermore, local infrastructure—or the lack thereof, including the condition of roads, bridges, and harbours—can introduce additional risks to making timely deliveries. Choosing experienced and reliable transportation partners or local subcontractors is essential, as unproven partners can introduce surprising and unwanted additional risks as well as uncertainties to the logistics chain.
Additionally, when a company enters into new and remote markets, there are can be difficulties in finding partners with no or few sub-contractors available in the region, for example.
If’s expertise in pioneering new markets
In cases where domestic insurers and reinsurers are completely or partially unable to underwrite the risk or in fact do not want to underwrite the risk, it is possible to resort to foreign capacity. If has established a vast network capable of arranging compliant insurance coverage in over two hundred countries, ensuring seamless integration into global transportation insurance programs.
Insurance considerations should parallel the initial stages of trade negotiations, regardless of the industry or scale of the project. Early engagement with If's experts ensures companies have sufficient time to ascertain whether existing global cargo insurance programs suffice or a local insurance solution is necessary. Pre-shipment surveys, cargo risk assessments, and equipment inspections are part of the comprehensive services we provide to reflect on and manage transportation risks.
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At If Insurance, we are committed to supporting our clients in wherever they are, leveraging our extensive experience in risk surveying and insurance provision to the more distant locations of the world.
??Read the article: Navigating risks in global trade.
Over the past year, If Insurance has worked with clients on over 3000 claims that relate to cargo-related incidents and accidents.
Of these claims, around 2000 were related to handling errors. This includes, for example, poorly secured cargo on road, rail, or sea transportation. When transporting goods, it is vital to adhere to the existing national, or international regulations.
Unsecured cargo carries serious risks, and often there are human factors involved. According to Markus Hyt?nen , Cargo Risk Engineer at If, some of the more typical accidents and incidents relate to negligence, fatigue, and inexperience. However, criminal acts in warehouses or during road transports are also increasingly common.
??For more detailed examples read the article by Markus Hyt?nen: Surveying truck, trailer and rail cargo.