A Logistical Success


Joe Coray, vice president of The Hartford’s Marine and Technology and Life Science Practices, and Beth Bronger-Jones, Director of Marine Underwriting for The Hartford, discuss the growing logistics industry and the ensuing coverage issues. The following are excerpts from that interview:


Changes for businesses in the logistics industry: When we think of logistics, we think generally of the business that manages the flow of goods from the point of origin to the point of consumption. With that comes a whole lot of move- ment along the supply chain. This has evolved into a very complex process because manufacturers and retailers want to have the right amount of goods at the right price, at the right location, without any waste. In order to keep the cost down, they have begun to use outsourcing more and more. Most manufacturers and retailers now look to other organiza- tions to move their goods.


JOE CORAY Vice President of The


Hartford’s Marine and Technology and Life Science Practices


We also have to continue to write coverage grants that speak to the causes of loss or the perils that logistics com- panies face, and the coverage has to stay current with the way the transportation industry is operating today.


“ ” BETH BRONGER-


JONES Director of Marine Underwriting for The Hartford


complex process not only to analyze exposures but to make sure you understand each and every customer because they are all unique.


“ ” It’s a very


How these changes affect coverage needs: There’s a noticeable trend toward more direct damage, risk trans- ference on the contracts. This requires more sophisti- cated coverage to help customers address these types of exposures.


What an evolving legal environment means: There is an increased consolidation and expansion of services, and the contracts are getting more complex. It takes sophisti- cation to navigate the legal environment in which logistics companies operate. The challenge for an insurer is to bring the understanding of the industry’s complexity and match the right types of coverage for logistics companies to man- age their risk. The brokers and agents who work in this industry tend to specialize in the transportation sector and know their clients very well.


How The Hartford is responding to the changing


needs of businesses in the logistics industry: We have developed several forms that can address their unique needs and exposures. In addition to distinct transit forms, we have our Warehouse and Logistics Choice coverage form, which is our premier product. It can be coupled with an ocean cargo form to cover international transit and for- eign warehouse exposures as well. The form is very flexible in that it addresses the multitude of third-party legal liabili- ties, as well as the possibility of first-party coverages that a warehouse or logistics company might need.


Listen to the full interview or share this edition at www.bestreview.com/issuesanswersarchive.asp.


Best’s Review December 2011


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