By Maria Kalamatas | March 25, 2025 | The Logistic News
At the Cargo Insurance London conference held today, Steve Parker, Director General of the British International Freight Association (BIFA), joined Marcus Baker, Global Head of Marine, Cargo and Logistics at Marsh, to deliver a thought-provoking opening address. Together, the two industry leaders shed light on a persistent and costly issue: the alarming volume of cargo that moves across global supply chains without adequate insurance coverage.
In their joint remarks, Parker and Baker emphasized the disconnect between the scale of global freight movement and the relatively low uptake of cargo insurance. They highlighted the significant opportunity the insurance market may be missing by not simplifying the customer journey—particularly for small and mid-sized freight forwarders.
“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 noted, reflecting on the recurring challenges BIFA encounters through its 1,800 member companies—most of which employ fewer than 10 staff.
Baker echoed the sentiment, reinforcing the idea that a more accessible, streamlined approach to cargo insurance would benefit all stakeholders. Both speakers underlined the need to simplify both placement and claims processes, especially for smaller freight firms that often lack the in-house capacity to integrate insurance into their offerings.
Parker explained that BIFA is regularly contacted by members following incidents involving uninsured or underinsured shipments. “Typically, they say that the process is too complicated and long-winded for what is a small return,” he said. This complexity often discourages smaller companies from offering insurance as part of their freight services—leaving traders exposed to significant risk.
To address this, Parker proposed a more integrated insurance model where coverage is automatically included in the freight rate, with an opt-out rather than opt-in structure. “BIFA wants to see cargo insurance become the norm, not the exception,” he declared.
The message was clear: increasing the adoption of cargo insurance across the industry is not just a win for the insurers—it’s a win for the entire supply chain.
Parker concluded, “The trader gets the cover they need. Our member has the comfort of knowing that in the event of an issue, the goods are insured. The insurance industry receives more business.”
As the freight and insurance sectors continue to face mounting logistical and financial risks, today’s call to action may mark a pivotal moment in reshaping how cargo insurance is positioned, sold, and delivered worldwide.
