The concept of analytical underwriting is not new. Many years ago, in the motoring history all that was required to quote a premium was the value of the vehicle as a percentage was obliged to the value to calculate the premium, irrespective of all other factors. Nowadays, many questions have to be answered such as age of driver, make a vehicle, in which province it resides, where is it parked, etc. by answering these questions, premiums are lower in low risk situations and higher in high-risk situations. The lower premiums attract more business and the higher premiums make the higher risks more profitable.
Garfin, for the first time in the marine insurance industry, introduces the concept of analytical underwriting. For example, at present in the shipment comes from a port in China, to Durban South Africa it is charged the same premium as it became from inland China, the voyage was transhipped somewhere in the world, lands in Durban and then gets trucked to Johannesburg.
Similarly in airfreight, if a shipment went straight from Frankfurt’s to Johannesburg with Lufthansa, at present it is charged the same premium as if it flew on Ethiopian airlines and was transhipped in Addis Ababa.
With analytical underwriting, Garfin, through its underwriters, is able to offer lower premiums are lower risks that’s providing additional business opportunities for you the forwarder/transporter. Higher premiums and higher risks will not necessarily drive the high-risk business away but would make it more profitable because customers will be willing to pay additional premiums to be able to save significantly on transport on indirect shipments