FTW

                                                                                                              6 August 2010

The sensitive nature of fruit, the complexities of shipping the product and the consequent claims-intensive nature of perishable insurance has done little to attract brokers and insurers to the sector.

But Eikos Risk Applications recognised the opportunity of developing a different focus in the field early on, and 11 years down the line is now a major service provider to the industry – providing tailor-made solutions to both shippers and logistics providers.

“We have a unique and specialist understanding of this industry from a risk profiling, broking, risk management and claims management perspective,” says Eikos Risk Applications director Bimesh Ugarchund.

The approach initially involves detailed risk profiling. “We analyse and understand the shipper’s specific business and risk profile and his needs in order to negotiate an optimum solution with insurers,” he told FTW. “We also look into clients’ physical risk management, their loss control activities in the cold chain and contractual standing which can mitigate the risk”.

By providing insurers with an explicit understanding of the client’s profile and his inherent risks, says Ugarchund, “we believe it creates a level of ‘comfort’ for insurers to underwrite these and to provide wider cover and policy wordings at more reasonable costs.”

When it comes to perishables, standard industry solutions are inadequate, he says. Pertinent risks like temperature variation and delay leading to deterioration of the goods must be taken into account. “The Eikos solution caters for this at varying levels of cover depending on the shipper’s level of confidence in their physical risk management and loss control methodologies in the cold chain” explains Ugarchund.

“Our approach is to assist shippers in collating and proving their claims to the insurer and to represent the shippers in the best possible way. Our claims handlers have more than just a general knowledge of this industry and the related claims and their contribution extends much further than just being a “Post Office” to and from the insurer.”