Choosing the Right Cargo Insurance: Avoiding Costly Mistakes

When it comes to cargo insurance, choosing the cheapest option isn’t always advisable. Many shippers unknowingly select ICC-C coverage, thinking they’re covered—only to find out too late that their policy doesn’t protect against common risks. 

While ICC-C may be the most affordable option upfront, it only covers extreme situations, such as total loss due to a plane crash or a vessel sinking.

For businesses that rely on secure and reliable shipments, making an informed decision about coverage levels is critical. Understanding the differences between ICC-A, ICC-B, and ICC-C can help prevent unexpected financial losses.

Breaking Down Coverage: ICC-A, ICC-B, and ICC-C

  • ICC-A (All Risk) – The most comprehensive coverage. Protects against theft, damage, loss in transit, and more—the best option for high-value or fragile items.
  • ICC-B – Mid-tier coverage. Excludes some risks covered under ICC-A, such as partial losses from external factors.
  • ICC-C – The cheapest option. It only covers major disasters like vessel sinking, fire, or total loss—leaving cargo owners vulnerable to theft, damage, or minor incidents.

Example: If you’re shipping a high-theft item like electronics, ICC-C won’t cover theft. Without ICC-A, you could be left without recourse if your shipment disappears in transit.

Another common mistake? Shipping used goods and simply defaulting to new general merchandise when purchasing insurance, without realizing that your cargo may in fact require special approval by your underwriter. Further, your specific commodity may even be excluded altogether if it is not an available option when purchasing insurance. If your online insuring platform does not list your commodity, we recommend confirming coverage with your insurance representative.

Why Investing in Better Coverage Makes Sense

Many shippers assume that ICC-A is significantly more expensive, but in reality, the price difference is often just a few dollars more per shipment, depending on the overall value of cargo insured and if a standard transit route. Given the financial risk of loss or damage, opting for better protection is a small price to pay for peace of mind.

For companies unsure of the right policy, working with insurance specialists like Arete helps ensure your cargo is protected without unnecessary costs. Reach out today for more information and best practices from your friends at Arete.

Posted in UncategorisedTagged in , , ,

Claims in Focus: Arete Adjusting’s Survey Highlights Challenges and Opportunities in the Insurance Industry

Claims are the backbone of the insurance industry, ensuring trust and reliability for clients during critical moments. Yet, claims professionals often work in the shadows of underwriting and sales. To shine a light on the indispensable role claims play and better understand the industry’s perspective, Arete Adjusting ran a comprehensive survey among industry peers this past year.

“We wanted to understand how claims are perceived within the industry and identify ways to improve,” says Liam Richards, CEO of Arete Adjusting. “Claims professionals uphold the promises of insurance, balancing technical expertise with human empathy. By collecting honest feedback, we aim to make the field more appealing to new talent and enhance its recognition.”

Survey Findings: A Human-Centric Focus

The survey revealed that communication, empathy, and technical expertise rank highest among qualities for claims professionals. Respondents also emphasized the need for timely handling and managing multiple stakeholders effectively. As Richards notes, “The responses highlighted the delicate balance claims professionals must maintain between service and cost control. With the rise of AI, ensuring the human element remains central is critical.”

Challenges and Opportunities

Emerging trends, such as digital transformation and environmental technologies, underscore the growing complexity of claims handling. Additionally, respondents identified areas for improvement, including product knowledge transfer and better integration between underwriting and claims.

“Training and mentorship programs can bridge the gap between experienced professionals and younger talent,” says Richards. “It’s not just about assessing losses—it’s about narrative, trust, and reputation.”

Looking Ahead

Arete Adjusting’s survey provides a roadmap for addressing industry challenges while celebrating the unsung heroes of insurance. By fostering curiosity and emphasizing professional development, Arete Adjusting hopes to inspire the next generation of claims professionals.To find out more about the Claims Awareness survey, view the full analysis and insights here.

Posted in Adjusting InsightsTagged in , ,

Understanding Subrogation: A Crucial Aspect of Insurance Claims

subrogation

Understanding Subrogation: A Crucial Aspect of Insurance Claims

When it comes to insurance, the terminology and processes can sometimes be complex and difficult to navigate, especially during a claim. One term that often arises but may not be fully understood by policyholders is “subrogation.” At Arete Adjusting, we believe that understanding subrogation is essential for the insured.

What is Subrogation?

Subrogation is a legal principle in the insurance industry that permits an insurer to assume the rights of the insured once a claim has been settled. Essentially, after compensating the policyholder for their loss, the insurance company can seek to recover the costs by pursuing a third-party responsible for the damage. This process helps insurers recover some or all of the money they paid out to their policyholder, while also ensuring that the responsible party is held accountable.

For example, if a policyholder’s property is damaged by a third party—such as in a car accident where the other driver is at fault—the insurer will cover the policyholder’s claim. After the claim is settled, the insurer may then pursue the at-fault party or their insurer to recover the costs. This pursuit of recovery is subrogation.

Why is Subrogation Important?

Subrogation plays a vital role in the insurance ecosystem for several reasons:

  1. Cost Recovery: It allows insurers to recover funds, which can help keep insurance premiums lower for all policyholders. By pursuing the responsible party, insurers can offset the costs of claims.
  2. Accountability: Subrogation ensures that the party responsible for the loss is held accountable, rather than the loss being absorbed by the policyholder or the insurer.
  3. Fairness: It promotes fairness by ensuring that the party who caused the damage is ultimately responsible for the costs, rather than spreading those costs across all policyholders.

How Arete Adjusting Can Simplify the Process

The subrogation process can be complex and time-consuming.  At Arete, we consider subrogation at the onset and during a claim, not just at the end. By addressing subrogation during the entire claim process, we are affording insurers and their policyholders the best possible recovery.

By partnering with Arete Adjusting, insurers can benefit from:

  1. Expertise: Our team has extensive experience in subrogation, ensuring that every opportunity for recovery is explored and pursued effectively.
  2. Efficiency: We streamline the subrogation process, reducing the time and resources needed from the insurer’s side, allowing them to focus on providing top-notch service to their policyholders.
  3. Flexibility: Arete Adjusting doesn’t need to handle the entire claim process to assist with subrogation. Whether we manage the initial adjustment or just the subrogation, we offer flexible solutions tailored to the insurer’s needs.

Making Life Easier for the Insured

For policyholders, dealing with a claim can be stressful. They also must know when a company like Arete can step in and help.

All insurers want to be notified of a claim, even when the claim value is under the deductible. The difference between claims exceeding a deductible versus ones beneath is that if the claim is over the deductible, the insurers will do all the work. Beneath the deductible, the insured customarily proceeds alone. 

Arete can work with policyholders when there is a high dollar deductible and they lack either an in-house team or the experience to pursue the claim. For instance, if a policyholder has a $100,000 deductible and an $80,000 claim, Arete can provide advisory and technical assistance. 

By choosing an insurer that works with Arete Adjusting, policyholders can rest assured that their insurer is backed by a team of experts who will handle the subrogation process smoothly and efficiently. This means faster resolutions, better loss ratios, less hassle, and peace of mind for the insured.

Subrogation is a critical aspect of the insurance claims process that benefits both insurers and policyholders. By recovering costs from the responsible party, insurers can maintain fair pricing, and policyholders can avoid the financial impact of a claim. Arete Adjusting’s specialized services offer a streamlined, efficient solution that allows insurers to focus on what they do best while ensuring the process is handled expertly.

Contact us today to learn more.

Posted in UncategorisedTagged in , , ,

Litigation Funding and Talent Shortages

“Big issues for the industry says this new arrival”.

Arete Adjusting recently launched operations in North America, fixing its sight on the marine and logistics insurance market.

In an interview with Insurance Business America, Arete’s CEO, William (Liam) Richards, discusses the decision to enter North America and the need for a better claims adjusting experience.

Click here to read the full article.

Posted in UncategorisedTagged in , , , , ,

Arete Adjusting Launches Operations in North America

Experienced leadership, technical differentiators key to underwriter customers.

Arete Adjusting, LLC (Arete), a Third Party Administrator (TPA) member company of insurance ecosystem +8 Partners, announces its entry into the North American claims market.

Arete will utilize people, technology and its fellow +8 member companies to provide a comprehensive and insightful claims management service to the cargo and logistics insurance industry. The company’s data-driven approach, end-to-end claims management and customized solutions are committed to delivering more profitable, sustainable portfolios for underwriters in the North American logistics sector.

William “Liam” Richards, chief executive officer of Arete, lays out the company’s vision: “We are focused on ‘intelligent adjusting.’ Claims management is not just about navigating the complexities inherent in those claims, but today is about delivering pioneering insights that will redefine industry standards. Arete’s multi-node, cloud-based architecture “Crux©” and 360-degree data analytics will empower our clients with the tools to run sustainable, profitable portfolios.”

Richards previously held senior positions at WK Webster Overseas Ltd. in the UK and US. Juliet Good is Arete’s vice president, bringing more than twenty-five years industry experience, fully half of which was in marine and legal liability claims resolution for transportation intermediaries.

“Data-driven decisions lead to smarter outcomes for our clients, reinforcing the importance that sophisticated analytical tools play in claims resolution and overall portfolio profitability,” adds Good.

Philip Bilney, executive chairman of +8 Partners, said: “Arete catapults the TPA scene into a new era with the most imaginative and robust technology offering in the sector, an intelligent and nuanced offering epitomizing the philosophy of +8.”

“Liam and Juliet are already well known to many of our clients, and their leadership and experience will provide the focus and commitment necessary for the delivery of genuinely intelligent adjusting solutions.”

Arete will work closely with Cornice Claims Associates to extend the +8 Partners platform and support its existing and fast-growing logistics insurance business in North America.

Posted in UncategorisedTagged in , , , , ,

Tips for Handling Delayed Goods Due to Panama Canal Backlog

In 2024, the canal might miss a total 1,500 vessels that would pass through in normal conditions, said the Authority’s Deputy Administrator Ilya Espino. Due to the transit restrictions, the Panama Canal Authority has forecast a reduction of up to $700 million in toll revenues for the current fiscal year ending in September. (Source: Reuters, Feb. 7)

The Panama Canal Authority has been restricting traffic since summer 2023, resulting in numerous shipments that have been stuck or delayed. This included a heavy backlog of goods that were sent to meet increased demand of the 2023-24 Holiday season.

The delays were caused by drought in the canals, made worse by on-going restrictions, which resulted in containers of perishables and Holiday-market products arriving after their ETA. This type of scenario typically leads to a mass rejection from the consignee and increased abandonment when shipments do arrive.

If the situation doesn’t improve, vessels might have to consider using other routes, which could lead to an increase in the cost of transportation.

From a Freight Forwarder’s perspective, delay is generally excluded, especially if it falls outside your control. Claims of such nature should be rejected. This may cause friction with customers, but to avoid expensive claims, it is imperative to not agree to specific times or dates of arrival.

Insurers, however, expect to receive many uncleared or abandoned containers that were intended for a particular market and no longer retain the same value. It is important for the Forwarder to carefully monitor all containers that might be traveling via the Panama Canal and notify their liability insurers immediately. If the goods are likely to be abandoned, it is important notify early to avoid incurring unnecessary storage/demurrage costs.

The shipper/consignee must be made aware they cannot simply abandon delayed cargo without settling all charges. Even if the cargo has little value, it will be less expensive for the shipper to accept delivery than to abandon shipments.

For More Information

Please contact our specialists: info@areteadjusting.com.

This article was written in conjunction with +8 Partners member companies.

Disclaimer: All claims are subject to the terms, conditions and exclusions of the relevant product disclosure statement and/or policy.

Posted in UncategorisedTagged in , , , ,

Bespoke technology

We handle claims efficiently and transparently throughout the entire event chain while curated data collection enables the intelligent analysis of emerging trends across a portfolio.