Breaking Down Silos: Fostering Collaboration Between Claims and Underwriting

The insurance industry’s relationship between claims and underwriting often resembles two parallel tracks—both integral to the journey, yet rarely intersecting. While underwriting defines the risk and claims handle the reality, the truth is that no one hopes for these tracks to cross. But when they inevitably do—because in insurance, it’s more a matter of “when” than “if”—the ability to align these functions early on is key to streamlining a challenging situation.

Underwriting and claims have distinct roles: one prices the risk, the other evaluates the loss. Yet, their goals are inherently intertwined. By acknowledging and planning for their intersection—however uncomfortable it may seem—insurers can preempt communication gaps. Defining responsibility and processes upfront ensures that when claims arise, the customer experience is seamless, efficient, and fair.

In an industry where the unexpected is expected, fostering collaboration between underwriting and claims isn’t just good practice—it’s essential to delivering better outcomes for both insurers and policyholders.

The Benefits of Collaboration

Breaking down silos between claims and underwriting allows for knowledge sharing that benefits both teams. Underwriters gain valuable insights from claims data, improving their ability to price policies more accurately. Similarly, claims teams benefit from a clearer understanding of underwriting decisions, enabling faster and more informed claims processing.

Collaboration can also improve customer trust and satisfaction. Policyholders expect seamless service and cohesive teamwork to ensure consistent communication and decision-making, reducing friction during sensitive moments like claims processing.

Navigating the Risks

While collaboration between claims and underwriting offers many advantages, it is equally critical to maintain clear and objective boundaries. These two functions serve different purposes and have distinct interests—insurers aim to manage risk and profitability, while policyholders expect fair claim resolutions. Recognizing and respecting these differences ensures that each side can operate impartially without undue influence from the other.

Organizations must adopt an arms-length approach to mitigate such scenarios, ensuring both functions can collaborate effectively on shared goals—such as improving accuracy, efficiency, and customer outcomes—while maintaining independence in their decision-making processes.

By delineating responsibilities and fostering impartiality, insurers can strike the right balance between collaboration and separation, ensuring their actions reflect fairness and accountability to all stakeholders.

The Way Forward

De-siloing claims and underwriting requires intentional effort, including:

  • Cross-departmental training to build mutual understanding.
  • Shared platforms for data exchange.
  • Regular communication through joint meetings or task forces.

Fostering collaboration between claims and underwriting isn’t just about breaking down barriers; it’s about building bridges that balance teamwork and accountability. By doing so, insurers can deliver better results for their organizations and policyholders alike.

At Arete, we work closely with our underwriting teams to build a culture of collaboration, efficiency, and integrity. Our system is designed to support this approach, ensuring seamless workflows and improved decision-making. Want to see how our model fosters better alignment between underwriting and claims? Contact us today for a demonstration of how our approach can enhance your processes.

Posted in Adjusting Insights, ClaimsTagged in , , ,

Seasonal Cargo Routes and Insurance Considerations

Shipping cargo along seasonal routes requires careful planning, especially considering differing insurance requirements and potential pitfalls. Winter and summer present unique challenges for shippers and forwarders, making it essential to adapt to seasonal conditions and mitigate risks effectively.

Winter Shipping Considerations

Winter cargo routes often expose goods to extreme weather conditions, including freezing temperatures, snow, and ice. Delays caused by storms and hazardous road conditions can increase transit times and the risk of damage. Temperature-sensitive items, such as perishables and electronics, face heightened vulnerability during winter. Shippers must invest in temperature-controlled containers to safeguard these shipments and ensure that insurance policies cover potential losses from weather-related delays or spoilage.

Ports and railways operating in colder climates may experience disruptions, requiring forwarders to plan alternative routes. Comprehensive insurance policies are critical during this season, particularly those covering damage caused by extended transit times or exposure to extreme weather.

Summer Shipping Challenges

Conversely, summer presents its own set of hurdles. Heat-sensitive goods, such as pharmaceuticals and certain food items, are at risk of spoilage during transit. Heatwaves and tropical storms can disrupt schedules and damage goods. Forwarders must prioritize refrigeration and cooling systems for temperature-controlled shipments while securing insurance coverage for risks specific to warmer climates.

High shipping demand during summer’s peak season also strains capacity, increasing the risk of delays and mismanagement. Properly evaluating carrier reliability and maintaining clear communication with insurers can reduce exposure to financial losses.

Tailored Insurance and Risk Mitigation

Each season requires a tailored insurance approach. Freight forwarders should account for route-specific risks, such as extreme cold, heat, or transit delays. Collaborating with your insurance broker ensures that insurance policies align with operational realities and provide adequate protection against seasonal risks.

Shippers and forwarders can ensure smoother operations and financial stability throughout the year by understanding seasonal challenges and proactively managing risks. Internally discussing and better understanding your company’s own trading routes is essential for mitigating seasonal cargo risks.

Posted in ClaimsTagged in , , , ,

Navigating Cargo Claims: Best Practices for Shippers and Carriers

Cargo claims are an inevitable part of the logistics, transportation and supply chain journey. Damages, delays, or lost goods can disrupt supply chains and create tension between shippers and carriers. At Arete Adjusting, we believe proactive education and preparation are the keys to effectively navigating cargo claims. By following best practices, shippers and carriers can streamline the claims process and foster stronger relationships.

Understanding the Cargo Claims Process

A cargo claim is a formal request to a carrier for financial reimbursement due to loss, damage, or delay of goods during transit. To ensure a smooth process, logistics professionals must understand the steps involved and have the proper documentation in place.

Essential Documentation for Filing a Claim

  1. Bill of Lading (BOL): This is the primary document outlining the shipment details and terms of carriage.
  1. Proof of Delivery (POD): POD verifies the condition of goods upon delivery and can highlight any damage or discrepancies.
  1. Inspection Reports and Photographs: Visual evidence of damages and detailed inspection reports strengthen your claim.
  1. Commercial Invoice and Packing List: These documents validate the value of the cargo and its contents.
  1. Written Claim Submission: A clear and concise claim letter specifying the issue, damages, and requested compensation is vital.

Best Practices for Speedy Resolutions

  • Act Promptly: File the claim as soon as possible within the carrier’s required timeframe to avoid delays or denials.
  • Maintain Clear Communication: Collaborate with the carrier and provide requested information promptly to keep the process moving.
  • Understand Liability Limits: Familiarize yourself with the carrier’s liability under applicable laws or agreements, such as the Carmack Amendment or Hague-Visby Rules.
  • Engage Experts When Necessary: Professional adjusters like Arete Adjusting can provide valuable expertise to navigate complex claims efficiently.

The Role of Arete Adjusting

At Arete Adjusting, we manage cargo claims for shippers, carriers, and insurers. Our team provides expert guidance to minimize the impact of claims, expedite resolutions, and protect your bottom line. By leveraging our industry expertise, you can focus on your operations while we handle the complexities of claim management.

Cargo claims don’t have to derail your operations. You can navigate claims efficiently and maintain strong partnerships across your supply chain with proper documentation, timely action, and expert guidance. Ready to simplify your cargo claims process? Contact Arete Adjusting today for expert support in filing, managing, and resolving claims effectively. Let us help you keep your supply chain running smoothly.

Posted in ClaimsTagged in , , , , ,

Why Asian Insurers Should Be Partnering with Arete Adjusting for U.S. and North American Claims Management

For insurers in the Asian market doing business in the U.S. or North America, managing claims and navigating the intricacies of these markets can be challenging. Ensuring that claims are handled efficiently, losses are mitigated, and local regulatory standards are met requires a reliable and experienced partner on the ground. This is where partnering with Arete Adjusting, a Third Party Administrator (TPA) specializing in logistics/marine cargo and liability claims management, provides valuable support.

Arete Adjusting is based in North America and focuses solely on delivering quality outcomes for our clients. Our expertise lies in end-to-end claims management, leveraging our deep local knowledge and well-established relationships with key figures in the claims process, such as brokers, loss adjusters, legal entities, and co-insurers. By partnering with us, Asian insurers gain a trusted local presence that ensures seamless handling of their North American claims portfolios.

Challenges of Managing North American Claims from Asia

For insurers and underwriters based in Asia, managing claims in the U.S. or broader North America presents several challenges. Time zone differences, varying legal frameworks, cultural distinctions, and a lack of local market insight can all lead to delays in claims resolution and inefficiencies in communication. Without an experienced partner on the ground, insurers risk incomplete claims processing, mismanaged recoveries, and unsatisfactory outcomes for their clients.

Partnering with Arete, clients remain informed and abreast of emerging risks that the marine/logistics industry is experiencing in real-time, which may be hard to identify from Asia.

One of the most significant issues is navigating the legal complexity of the U.S. and North American logistics sectors. Regulations and liability standards can differ drastically between regions, and insurers need a partner who understands these nuances to ensure compliance and successful claim outcomes. Arete Adjusting brings this local expertise to the table, ensuring that claims are handled in accordance with the highest standards.

Arete Adjusting: Your Local Expert in North American Claims

Arete Adjusting provides comprehensive claims management services, including surveying, technical investigation of losses, legal review, loss adjusting, and pursuing recoveries against third parties. Our international network of partners and in-house experts ensures that every claim is thoroughly assessed, documented, and resolved efficiently.

For example, we recently assisted an Asian insurer in a particularly challenging situation involving coverage denials. In the U.S., insurance regulations vary by state, meaning denial letters must be tailored to meet state-specific legal standards to avoid potential legal consequences. We worked closely with the insurer to draft legally compliant letters, ensuring that all denials met the necessary state regulations. Additionally, we helped explain the outcomes locally to the claimants, making the process smoother for everyone involved. Denials are always difficult, but we felt that our involvement was especially appreciated in this instance, as it helped the insurer navigate the complexities of U.S. regulations and provided clarity for the claimants.

The Benefits of Partnering with a U.S.-Based TPA

  1. Local Expertise: Arete Adjusting provides on-the-ground knowledge of U.S. and North American markets, helping Asian insurers navigate the complexity of claims processing in these regions.
  2. Seamless Communication: Time zone differences and communication delays are minimized, with a local partner handling claims in real time, ensuring smooth and efficient processes.
  3. Comprehensive Claims Management: From initial survey to final recovery, Arete Adjusting manages the entire claims process, offering Asian insurers peace of mind that their North American claims portfolios are handled with care.
  4. Customized Solutions: Every insurer has unique needs, and Arete Adjusting works closely with each client to tailor our services to meet those requirements.
  5. Sustainable Results: By providing consistent, high-quality outcomes, Arete Adjusting helps Asian underwriters build more profitable and sustainable portfolios.

Why Asian Insurers Should Consider Arete Adjusting

Partnering with Arete Adjusting is a strategic move for insurers in Asia who manage claims in the U.S. or North America. Our in-depth understanding of local markets and our international capabilities mean that insurers can trust us to deliver quality outcomes for their clients. Whether it’s handling claims in the logistics sector or providing technical investigations and legal reviews, we offer a comprehensive solution that supports your business goals.

Businesses should keep in mind that in the US, there can be serious repercussions when US insureds file complaints with the State Department of Insurance (DOI) over their claim. If these State DOIs find that domestic/overseas insurers are not using licensed adjusters, it could lead to fines and reputational damages. Arete Adjusters are licensed across the US and are compliant with State Adjuster licensing requirements.

We understand the challenges that insurers face when operating across borders and are committed to simplifying the process for you. Arete Adjusting acts as your local partner, ensuring that you remain informed and in control without managing the complexities of claims processing from afar.

Looking to simplify your North American claims management? Contact Arete Adjusting today to discover how we can act as your trusted partner and ensure seamless claims handling for your business.

Posted in Claims, UncategorisedTagged in , , , ,

Protecting Your Cargo: The Importance of Accurate Documentation on Ocean Bills of Lading

In the world of international shipping, few documents are as critical as the ocean bill of lading (BOL). Serving as the contract of carriage between the shipper and carrier, this document not only outlines the terms of the shipment but also plays a crucial role in resolving claims when issues arise. For direct shippers, accurately declaring cargo piece counts on the B/L is vital to protecting their investment and avoiding costly errors.

The Impact of Inaccurate Documentation

One of the most common mistakes direct shippers make is allowing freight forwarders to declare the number of pallets instead of the individual pieces of cargo. Liam, CEO of Arete Adjusting, pointed out how this can negatively impact a shipper’s ability to file claims if something goes wrong. “I’ve seen claims not have their fullest outcome in the event of a loss because freight forwarders are putting the number of pallets, not necessarily the individual pieces of cargo,” Liam noted.

This distinction is crucial, especially considering that a carrier’s liability in ocean freight is often limited to around $500 per package. By documenting the number of pallets, shippers may unwittingly limit their recovery in the event of a claim. For instance, a shipment consisting of 13 pallets may actually contain thousands of individual items (cartons, drums, barrels, etc.), but if the B/L only lists the pallets, compensation in the case of damage or loss will be calculated based on those pallets—not the actual number of pieces.

Avoiding Claims Pitfalls: A Closer Look at Bills of Lading

Accurately identifying the cargo on the B/L is not just about ensuring proper liability coverage; it’s also essential for meeting customs requirements. Each country has its own import regulations, and failure to properly count and describe the cargo can lead to costly delays, fines, or even refusal of entry. This is particularly important when shipping high-value or sensitive goods.

For cargo bound for the United States, CBP regulations require the smallest individual unit of packaging be reflected not just on transport documents, but for electronic manifest and admissibility filings to the agency as well.

Freight forwarders are responsible for understanding the specific requirements of each destination country, but direct shippers must also take an active role in ensuring accuracy. While forwarders are often aware of country-specific regulations, they may not always provide the level of detail needed on the B/L, particularly when it comes to itemizing pieces of cargo.

Shippers should be proactive in reviewing the B/L draft before the document is issued. Double-checking that the actual number of pieces—not just the number of pallets—is clearly stated can prevent misunderstandings with customs authorities and reduce the risk of complications down the line.

Practical Tips for Shippers

Based on Arete Adjusting’s experience in handling claims for direct shippers, here are some key steps you can take to protect your cargo:

  1. Review the Draft B/L: Before your shipment is finalized, carefully review the draft BOL to ensure that the number of pieces of cargo, rather than just the number of pallets, is accurately documented.
  2. Work with Knowledgeable Forwarders: Choose a freight forwarder that is experienced in navigating international customs regulations. Freight forwarders connected to networks like the WCA are better equipped to handle complex documentation requirements.
  3. Understand Carrier Liability Limits: Be aware of the carrier’s liability, which can often be limited to a specific amount per package. Ensuring that each piece of cargo is properly accounted for on the B/L can help protect your rights in the event of a claim.
  4. Communicate with Your Forwarder: Maintain open communication with your freight forwarder to ensure that they understand the specific nature of your cargo and how it is packed, if there are overpacks involved and what quantity is being reported on both documents and in electronic declarations. This includes making sure they are familiar with the customs requirements of your destination country.

By following these steps, direct shippers can better protect their cargo and avoid the risks associated with inaccurate documentation.

At Arete Adjusting, we’ve seen firsthand how small mistakes in documentation can lead to big problems for shippers. Accurate bills of lading are critical for ensuring the proper handling of claims and avoiding delays with customs authorities. By taking a proactive approach and working with experienced partners, direct shippers can safeguard their cargo and reduce the likelihood of costly errors.

If you need guidance on navigating claims or ensuring your documentation is in order, Arete Adjusting is here to help. Our experience in handling claims for direct shippers allows us to provide expert advice and support every step of the way. Reach out today to learn how we can assist with your shipping needs.

Posted in Claims, UncategorisedTagged in , , , , , , , , ,

Preserving Evidence: The Key to Successful Cargo Claims

Shipments moving internationally travel long distances across multiple modes of transportation. Depending upon the mode – sea, air, rail or truck, cargo is subject to different forces. Sea freight has the rise and fall from waves and the pitch and yaw of the ship. Containers on rails are jarred forwards and backwards as trains accelerate and decelerate. If the packing is substandard or space is left for the goods inside to move freely, the potential for damage is present and possible. Add a heightened and active environment of cargo theft as it exists today, insuring cargo is more important than ever. 

In the event of damage or even a partial or total loss in transit, proper evidence preservation is crucial for ensuring a smooth claims process and maximizing your chances of being made whole for the loss. 

Arete offers this simple ten-point checklist, which we have refined over time, to help you cover your bases and quickly settle a claim. This allows us to pursue possible subrogation against the entity that had the cargo in its possession at the time.

  1. Document the Damage Immediately

As soon as you discover any damage or loss, document it thoroughly. Take clear, well-lit photographs from multiple angles, capturing both the overall scene and close-up shots of specific damage. Everyone these days has a phone with a camera that can be used to take photographs. 

Be sure to sign the delivery receipt with appropriate, detailed exceptions such as “hole in container” or “all cartons crushed.”These visual records are invaluable for claims adjusters.

  1. Keep All Packaging Materials

Don’t discard any packaging, even if it seems undamaged. The condition of boxes, crates, and internal packing materials can provide vital information about how the damage occurred.

  1. Maintain a Detailed Inventory

Create a comprehensive list of all damaged or lost items. Include descriptions, quantities, and, if possible, individual item values. This inventory will be essential for accurately assessing the claim’s value.

  1. Segregate Wet from Dry Cargo

Sort wet from dry cargo and thoroughly document the interior condition of the shipping container. Close the doors and see if light enters the container and document the location. Contact your adjuster directly for additional guidance.  

  1. Collect and Organize All Relevant Documents

Gather all paperwork related to the shipment, including:

  • Bill of lading
  • Commercial invoice
  • Packing list
  • Insurance certificate
  • Any correspondence with the carrier
  • Signed delivery receipts noting any visible damage.
  1. Record Witness Statements

If anyone witnessed the damage occurring or discovered it, obtain their written statements while the event is fresh in their minds.

  1. Notify All Relevant Parties Immediately

Because of strict time limits to report claims, it is important to inform your insurance provider, the carrier, and any other involved parties in writing as soon as possible. Many policies have strict time limits for reporting claims.

  1. Mitigate Further Damage

While preserving evidence, take reasonable steps to prevent further damage to the cargo. This might include moving goods to a dry area or applying temporary protective measures.

  1. Keep a Chronological Record

Maintain a log of all actions taken, conversations had, and decisions made regarding the damaged cargo. This timeline can be crucial for the claims process.

  1. Consult with Claims Professionals like Arete

On each insurance certificate, you’ll find the adjuster’s name to contact in the event of a claim. Our role is to establish the facts and determine the payable amount of loss so that the insurer can pay the claim. 

Following these evidence-preservation steps significantly increases the likelihood of a successful cargo claim. Remember, the more information and evidence you can provide, the easier it is for claims adjusters.

At Arete Adjusting, we understand the complexities of cargo claims and have established a network of surveyors and representatives who, if required, can physically examine the loss to ensure complete capture of the facts. To learn more about the role adjusters play in a cargo claim contact us today.

Posted in ClaimsTagged in ,

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