Navlos : Trade Insurance solutions within the Freight and Logistics Sector

Navlos is a product developed by Eikos Risk Applications that is aimed at the freight operator industry.

Here Eikos focuses on the rationalisation of operational and business risk exposure within the supply chain both from the perspective of the Frieght Forwarder (the client in this instance) as well as relative to transportation risk faced by the cargo owner himself (the insured).

The Freight team design risk solutions and develop products for all aspects of physical trade (cargo, liabilities, debtors and country risk) that manage risk and maximise returns in line with the Eikos philosophy. Eikos integrates the various group strengths and core functions such as marine and transportation risk management, risk finance, foreign exchange risk, debtors risk and its expertise in legal liabilities into a single trade solution that balances the exposures between freight operator and cargo owner and provides both parties with world beating risk solutions.

The service includes:

• Risk identification/analysis 
• Analysis of contractual exposures
• Risk profiling (qualitative and quantitative assessments)
• Marine and other trade related insurance covers
• Claims management
• Policy design and administration
• Premium management
• Information on electronic risk management
• Logistics/cost of risk analysis

The Eikos transportation team is innovating in the oldest sector of the insurance industry;  -marine. Through the introduction of the concept of limited liability, the innkeepers and carriers of old gradually began to push the cost of risk towards cargo owners. They started a chain of duplication and inefficiency more than three hundred years ago, which is still in place today. The Eikos team members, known for their challenging approaches, are developing policies and instruments that will finally remove the liability overlap.

The Navlos policy enables the freight operator to on-sell cargo insurance to its customers at a competitive premium cost, be it in respect of general cargo, perishable cargo (frozen or not frozen), bulk cargo (wet or dry) or household goods and personal effects.

• Extends to include Storage risks, be it "Storage in the Course of Transit" or a "Storage Only" risk.
• Allows customers to insure their policy excess amount only if required.
• Provides automatic cover for Containers of up to R100,000 should your customer be held liable for loss or damage thereto.
• Can be extended to accommodate the freight operator's customer's export credit risks.
• Automatically affords the freight operator Legal Liability Insurance Protection for claims over R200,000 and up to R1 Million, whilst affording an opportunity to purchase more specific legal liability coverage if required.
• Automatically safeguards the insurable interest of the freight operator in cargoes on which it has exercised a lien per its Standard Trading Conditions.
• The Navlos product is supported by a Team of highly skilled professionals based in the three main centers in SA that add value to the freight operator by:

• Accompanying marketing staff to client meetings to facilitate the on-selling of marine cargo and goods in transit insurance.
• Being accessible to provide specialist quotations or advice through a toll free telephone number.
• Competently handling all your customers cargo insurance claims through a toll free claims hot line.
• Conducting workshops in order to train staff on marine insurance matters.
• Conducting seminars on legal liability issues to increase awareness within the organisation.
• Providing the organisation with risk management advice in respect of legal liabilities.
• Providing the organisation with regular Management Reports to keep staff abreast with the performance of the Facility.

Navlos has been adopted by many of the leading Freight Operators in South Africa, including but not restricted to the likes of Micor Freight, Rohlig-Grindrod, Schenker SA, Barloworld Freight Logistics, Transnet, Bidfreight, Clover Cargo, Berry & Donaldson, Maersk Logistics, Turners Shipping, The Fuel Group, Super Group, Freightpak and Cargo Care.

The principle:  single risk, single premium. The result:  one-stop funding of risk throughout the transportation chain.

How the FAIS Act affects the Freight Agent

South African freight agents who offer insurance to their clients can only do so if they are FAIS compliant.

Eikos Risk Applications (Pty) Ltd is registered with the Financial Services Board of South Africa as a licenced Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act,  act number 37 of 2002. To read more, click here.

For more informatin about hte FAIS Act, please click here.