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Procurement Market Intelligence Report

Cargo Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Cargo Insurance?

What is the average price of Cargo Insurance?

This procurement report includes pricing information to help you purchase Cargo Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Cargo Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Cargo Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Cargo Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Cargo Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

The top four suppliers of cargo insurance account for less than 30.0% of total market revenue, indicating a low level of market share concentration. High fragmentation stems from low barriers to entry, which have allowed an influx of new suppliers, chiefly cargo transportation companies, to enter the market during the... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Customer Service

How many representatives do you have available? Will a particular representative be assigned to my account?

What are the operating hours of your customer service department?

Is it possible to receive any service online instead of in person or over the phone?

If you are not an insurance company, what authority do you have when administering the policy?

What additional support services do you provide (e.g. loss evaluation and risk management)?

What is your rate of renewal and accuracy for policy processing (e.g. claim, amendment and endorsement)?

Timeliness

What are your distribution channels? What is your turnaround time for each one? In particular, do you provide online distribution?

How soon can you issue a certificate of insurance?

What is the claim process from submission to pay out? How quickly is a payout received?

How has the COVID-19 (coronavirus) pandemic affected your ability to pay claims on time?

What is the amendment and endorsement process? What is the average turnaround time for an amendment and endorsement?

Financial Strength

Do you have a rating on AM Best or Standard & Poor's credit rating? What is your score?

How much claims reserve do you have? How is the reserve determined?

How often is the amount of loss above the amount that you forecast?

How has the insurance performed in terms of its loss ratio, combine ratio, expense ratio and operating ratio?

Insurance Coverage

What transportation vehicles and types of cargo do you exclude?

Can you provide coverage for shipments already in transit?

Do you require a minimum volume of shipments to maintain an open cargo policy?

Does the cargo have to terminate or originate in the United States?

In what geographic regions in the United States and abroad is the insurance carrier an admitted one?

Do you provide advanced or partial payment for claims?

Amid widespread health concerns, do you offer clients any flexible exceptions, such as contract suspensions?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased or reduced demand?

Cargo Shipment Experience

What types of cargo shipments are you most familiar with insuring (in terms of transportation method and type of product)?

What is the average size of your cargo insurance clients (e.g. shipment value and volume of shipments)?

What percentage of your clients requires coverage abroad?

Can you describe the typical risks cargo is exposed to in the supply chain?

Pricing

Do you provide discounts if shipments are more frequent and larger in value?

Do you take current and future shipping levels into account when determining the rate?

Can I renegotiate the rate if my shipment value increases significantly?

What risk management measures can I invest in that would lower the rate?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should request a detailed breakdown of insurers’ premium rates, deductibles, etc.

Buyers should outline any other costs for which insurers are responsible (e.g. mailing documents).

Selection Criteria

Buyers should evaluate insurers based on their costs.

Buyers should evaluate the quality of insurers' policies (e.g. level and adequacy of coverage).

Buyers should evaluate insurers' market experience and financial performances.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. presentations or final interviews) prior to the contract award.

Buyers should include the date the contract begins and ends, as well as any options for contract renewal.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk in the market for cargo insurance is moderate. Cargo insurers source inputs from a number of upstream suppliers, such as copier and office equipment wholesalers, computer and package software wholesalers, portfolio management firms, reinsurance providers and IT consulting firms. Although spikes in some of these inputs... Subscribe to learn more.

HIGH

MEDIUM

LOW