Steve Parker, Director General of the British International Freight Association (BIFA), and Marcus Baker, Global Head of Marine, Cargo, and Logistics at Marsh, delivered the opening address at the Cargo Insurance London conference, focusing on the issue of uninsured cargo.
Parker highlighted the alarming amount of global freight moving without insurance, emphasizing the challenges faced by small to mid-sized companies that struggle to incorporate insurance into their freight costs. He explained that many BIFA members find the insurance process too complex and time-consuming for the small returns involved.
Parker noted, “Most often, we hear from our smaller members, who lack the resources to include insurance in their offerings. The process feels cumbersome and overly complicated.”
BIFA represents 1,800 corporate members, many of whom are small businesses. Parker stressed that BIFA is committed to working with the insurance sector to simplify the process, aiming to make cargo insurance a standard part of freight services. He proposed a system where insurance is automatically included in the freight rate, and customers can opt out if desired.
Both Parker and Baker agreed that increasing the use of cargo insurance benefits all parties—traders, freight companies, and insurers alike. As Parker concluded, “With insurance in place, traders gain necessary coverage, members have peace of mind, and the insurance industry sees more business.”
