Insurance and reinsurance broker Willis Towers Watson has developed a new policy solution for the cargo market that provides protection for exposure to geopolitical risk.
Cargo Undercover will minimise potential gaps in coverage and the likelihood of claims disputes, Willis Towers Watson said, as well as removing the need to establish the motivation for a claim, which is often challenging during times of political instability.
The policy can be tailored to cover a variety of geopolitical exposures, including political violence, terrorism, rebellion, terrestrial wars and looting, whether politically motivated or otherwise.
Patrick Murphy, Head of Cargo, Global Marine, Willis Towers Watson, said “Geopolitical risk is creating an increasingly uncertain risk environment, particularly for cargo owners. Cargo Undercover is designed to create a flexible and bespoke risk-transfer option to tackle global fragmentation and conflict.
“Political uncertainty across trade barriers means cargo operators are regularly reviewing their political risk exposures. This solution ensures Willis Towers Watson can offer an innovative response to our cargo clients’ geopolitical risks.”
Willis Towers Watson added that the Cargo Undercover suite of solutions will work in conjunction with existing cargo insurance arrangements, and will provide protection against rising insurance costs when country risk ratings change as cover is provided on a global basis.
