Cargo Insurance: The Digital Option

Summary

In this final episode of the insurance series, Matthew Phillips, co-founder of Breeze, discusses how digital technology is revolutionizing the cargo insurance market. Breeze offers a seamless, embedded solution that streamlines the insurance process for freight forwarders, reduces costs, and increases operational efficiency. By focusing on flexibility and offering tailored coverage for each shipment, Breeze ensures that businesses only pay for the insurance they need. Additionally, Breeze's digital claims process enhances speed and transparency, with claims often settled within hours, providing a fast, customer-centric solution to the cargo insurance industry.

Takeaways

• 😀 Digital technology is revolutionizing the cargo insurance industry, making the process faster, simpler, and more efficient.
• 😀 Breeze offers an embedded cargo insurance model, allowing freight forwarders to integrate insurance seamlessly into their existing workflows.
• 😀 Traditional cargo insurance methods are being replaced by digital solutions that reduce administrative overhead and speed up the process.
• 😀 Awareness of the risks of underinsurance is increasing, with around 70% of global cargo still moving underinsured or uninsured.
• 😀 Breeze differentiates itself by offering a fully digital, automated cargo insurance solution that eliminates the need for brokers and paperwork.
• 😀 The cost of distribution is much lower for Breeze, allowing the company to pass savings directly to customers and offer more competitive rates.
• 😀 Breeze’s system is designed for flexibility, adapting to different systems and workflows used by freight forwarders (e.g., TMS, ERP).
• 😀 The ease of use of Breeze's platform allows freight forwarders to focus on customer service while providing cargo insurance as an additional offering.
• 😀 Breeze’s digital claims process is fast and efficient, with claims often being processed and paid within hours of submission.
• 😀 By digitizing claims handling, Breeze provides a streamlined experience that reduces paperwork, minimizes delays, and ensures faster resolution for customers.
• 😀 Breeze’s focus on customer satisfaction, transparency, and minimal disruption to existing operations has made it a valuable tool for modern freight forwarders.

Q & A

What is Breeze, and how does it differentiate itself from traditional cargo insurance providers?

Breeze is a digital cargo insurance provider that brings cargo insurance into the modern age. It differentiates itself by offering a fully digital, embedded solution, allowing insurance to be seamlessly integrated into existing workflows. This eliminates the need for manual paperwork, brokers, or lengthy processes, and provides faster, more cost-efficient coverage.

How has the cargo insurance industry evolved over the past few years?

The cargo insurance industry has seen three key developments: 1) Increased adoption of digital technology, making the insurance process faster and more efficient. 2) The ability to embed insurance directly into existing workflows, reducing manual tasks. 3) Growing awareness among cargo owners about the risks of being underinsured, especially after major global events like the Ever Given blockage.

Why is cargo insurance important, and what risks do shippers face without proper coverage?

Cargo insurance is critical because it protects against the risks of loss, damage, or theft during transit. Without proper coverage, shippers face significant financial risks, as up to 70% of global cargo is either underinsured or uninsured, leaving businesses vulnerable to unanticipated losses.

What are the benefits of embedding cargo insurance into existing workflows?

Embedding cargo insurance into existing workflows allows businesses to streamline operations, reduce administrative overhead, and eliminate manual data entry. This integration leads to faster insurance distribution, improved efficiency, and allows companies to focus more on their core operations while still ensuring adequate coverage.

How does Breeze ensure the insurance process is user-friendly and efficient?

Breeze ensures ease of use by offering a simple, digital platform that integrates seamlessly with various freight forwarder systems. The process is streamlined to allow users to get quotes and bind policies in seconds, without requiring complex forms or intermediary brokers. The system is designed to be flexible, allowing it to be tailored to different partners’ needs.

How does Breeze's digital claims process work, and why is it beneficial?

Breeze’s digital claims process is integrated into the freight forwarder’s workflow, enabling a fast and efficient claims submission process. By allowing digital submission of claims and supporting documents (e.g., photos), Breeze ensures quicker claim resolution. This digital process reduces administrative delays and offers faster payouts, with some claims processed within hours.

How does Breeze handle the potential challenge of varying systems used by different freight forwarders?

Breeze addresses the challenge by adapting its platform to integrate with the different systems used by various freight forwarders, such as TMS (Transport Management Systems) and ERP (Enterprise Resource Planning). This customization allows Breeze to provide a tailored experience for each partner while maintaining operational efficiency.

What role does Breeze play in helping freight forwarders improve their service offerings?

Breeze helps freight forwarders by enabling them to offer a more comprehensive service to their customers. By embedding cargo insurance into their operations, freight forwarders can provide a seamless insurance solution alongside their other logistics services, improving customer satisfaction and generating additional revenue through insurance sales.

How does Breeze's business model help reduce the cost of insurance for customers?

Breeze’s business model focuses on low-cost distribution through technology. By eliminating many of the traditional costs associated with manual processing and intermediaries, Breeze can offer insurance at a lower cost and pass those savings onto their customers.

What is the key benefit of Breeze's flexibility in insurance coverage?

Breeze’s flexibility allows customers to pay only for the coverage they need on a shipment-by-shipment basis, ensuring they receive the most comprehensive cover without paying for unnecessary extras. This tailored approach provides better value and reduces the risk of overpaying for insurance.