Freight forwarders generate income from cargo insurance
It pays to offer cargo insurance to your clients
The team at specialist marine insurance brokers, AlphaXO Risk Partners has decades of experience in all forms of marine insurance, including cargo insurance.
Many freight forwarders choose not to assist their clients with insurance for their goods, often due to the perceived additional complexity.
However, when properly set up, it can build stronger client relationships, reduce the chance of a claim being made against the forwarder and provide an additional income stream.
We’ve spoken to several freight forwarders who reap the benefits of offering insurance to their clients. They use the following 5 steps to maximise the value to their business:
- Provide quotations using our online system (typically taking less than 2 minutes per quote)
- Offer insurance to every client on every job they quote
- Add the optional insurance cost to the shipping invoice
- Refer any claims straight to the AlphaXO claims team, better supporting their client and minimising the hassle
- Add a separate administration fee to each insurance policy they arrange (they all charge different amounts but $50 is common)
Using this approach, the client take-up of insurance is much higher and so enables a strong income stream to be developed.
|Number of shipments per month||500|
|Take-up of cargo insurance||20%|
|Administration fee charged per contract||$50|
|Additional income per month||$5,000|
|Additional income per year||$60,000|
If you would like to know more about AlphaXO’s easy-to-use online cargo insurance system or how to set up the process most effectively for your business, contact AlphaXO’s dedicated logistics team on 1300 066 391.