Steve Parker, director general of the British International Freight Association (BIFA), has called for solutions to tackle the issue of underinsured or uninsured cargo.

Speaking alongside Marcus Baker, global head of marine, cargo and logistics at Marsh, Parker delivered the opening address at the Cargo Insurance London conference.

Parker and Baker highlighted the problems caused by uninsured cargo and explored opportunities within the global insurance market to address these challenges.

Both emphasized the need for the insurance sector to simplify the process of obtaining and claiming cargo insurance to benefit all parties.

"During the 50 years I have been in this industry, one of the things that has always surprised me, is the amount of freight that moves globally without insurance," Parker said.

He noted that BIFA is often contacted by its members following incidents involving uninsured consignments, particularly small to mid-sized companies.

"Most often it is one of our small to mid-sized corporate members, which might not have the resources to incorporate an insurance offer into the freight cost. Typically, they say that the process is too complicated and long-winded for what is a small return," Parker added.

Parker emphasized that many of BIFA's 1,800 corporate members employ fewer than 10 staff, making it harder to manage insurance processes.

He then called on the insurance industry to streamline procedures, proposing a system that includes insurance in freight rates by default, with customers opting out if they choose. 

"BIFA stands ready to work with the insurance sector to address this issue and make the process to obtain transit insurance less cumbersome. We need a system that makes it easy for insurance cover to be included in the freight rate offered and the customer has to opt out rather than opt in," Parker added.

"BIFA wants to see cargo insurance become the norm, not the exception," he said.

Both presenters agreed that increasing the use of cargo insurance would benefit all stakeholders.

"The trader gets the cover they need. Our member has the comfort of knowing in the event of an issue, that the goods are insured. The insurance industry receives more business," Parker said.

The session also underscored the importance of collaboration between freight associations and the insurance sector to address gaps in cargo coverage and enhance industry practices.