How Brokers Are Staying Ahead of Transport Risk With NTI

By their very nature, transport and logistics businesses rarely stand still for long. 

New trucks and equipment come into the business. Freight tasks change. Supply chains evolve. Shipping routes are altered in response to events happening on the other side of the world.

For the customer, those changes can simply be part of getting the job done. But in the eyes of the broker and insurance provider, they can also change the risk exposure.

Brokers bring a deep understanding of their customers and how their businesses are changing. NTI complements that with specialist transport, underwriting, claims and risk expertise, helping assess what those changes can mean for a customer’s exposure and insurance needs.

NTI Chief Underwriting Officer Andrew Kidd and Head of Platforms Alisha Hill see how those changing risks play out across the insurance process, from assessing exposure at placement to supporting a customer through a claim.

Key takeaways

• Shocks travel further and faster than they used to. A disruption in one market can soon reach an Australian operator through fuel, freight, packaging or parts.
• A customer’s risk can change throughout the year. New equipment, different commodities and changed routes can all alter the picture, and customers may rarely think to mention it. 
• Broker and insurance provider expertise are strongest together. Brokers bring knowledge of their customers, while NTI brings specialist industry expertise.
• Early notification can make a real difference. Involving NTI as soon as a loss occurs gives everyone more opportunity to respond effectively.

What supply chain shocks can look like for operators

Disruption itself isn’t new, but businesses are feeling impacts faster than ever. Supply chain shocks can now reach an Australian yard within days.

“Diesel impacts every part of our life,” Andrew says. “Whether it’s a truck crossing the country, an importation of goods from overseas, or the packaging developed from petrochemical components that come from the Middle East.”

That can translate into higher running costs for customers, longer lead times on parts, and freight that moves differently from last year. It also changes the picture underwriters are looking at. Increasingly, that means understanding the customer’s wider operation, including who they rely on, who their customers are and where disruption elsewhere in the chain could affect them.

Alisha sees the same complexity inside businesses. AI workflows, automation and changing buying behaviour are all having an impact at once.

“There's just so many more things to think about, from an underwriter's point of view and from an insurance provider's point of view as well,” she says. “It's a whole new world compared with what we were seeing five years ago.”

Where specialist knowledge complements broking expertise

“We see brokers as having strong relationships with their customers,” Alisha says. “Where those support systems are strong, we see customers being loyal to their broker.”

NTI’s role is to support that relationship. We stay close to the industry through boards, associations, and safety work, and share what we learn. 

“It's all about being able to provide the broker with the support they need and the information that they need to be the person that the customer wants to turn to," Alisha says.

“Our niche industry knowledge can complement that broad expertise brokers have across their customers, across the market and across risk," Andrew adds. "That's where we really see the great outcomes happen, when those partnerships come together.”

That combination gives brokers access to a specialist view of transport risk alongside the customer knowledge they already bring to the relationship.

Where risk changes between renewals

Typically, customers don't think about insurance day to day, so it may not occur to them to mention a change.

“They’re busy trucking, shipping and digging,” Andrew says.

Few operators stop to think whether a change in the business needs to reach their broker. In Andrew’s experience, those changes often emerge through the broker’s existing relationship with the customer, rather than through a formal process.

“What’s changed through the year that the customer just didn’t think to tell their insurance provider about?” Andrew asks. Asking the question tends to close the most gaps at renewal.

Changes on the road

On the road, the changes are usually things you can see, but they don't always make it onto the schedule.

"I hear great experiences from brokers who simply go and walk a customer's yard," Andrew says. "Have they bought a new piece of mobile plant and equipment? Have they bought trucks that the broker doesn't know about? Are there things that need to be added to schedules at renewal?"

Changes at sea

At sea, the changes are harder to see. A different commodity, a new origin country, a change of shipping line or port can each affect how goods move through the supply chain, including the routes, handling points and operators involved.

When routes change mid-voyage

Recent disruption around the Strait of Hormuz raised questions about whether marine wordings could keep pace when shipping patterns changed quickly.

Because marine policies may need to be understood by an Australian exporter, an overseas buyer, financiers and shipping companies, the wordings tend to be globally recognised and tested over time. They’re also designed to accommodate deviation, where a vessel changes course mid-voyage for a safer harbour. 

In NTI's case, some voyage deviations can be accommodated without the broker needing to notify us mid-voyage, depending on the circumstances and applicable policy wording.

“Brokers don't need to be concerned about closing a gap,” Andrew says. Australia's direct trade into the region is also limited, so fewer customers were affected than expected.

Andrew says the bigger issue is how changes within a customer’s supply chain can affect the risk. A new origin, route or trading arrangement can alter that picture, which is where early discussion with an underwriter can help clarify whether the existing policy structure remains fit for purpose.

Why the first call after a loss matters

Andrew says early insurance provider involvement can make a real difference once a loss occurs. It may seem obvious, but it’s surprising how many let considerable time pass — enough to make a difference.

Getting the insurance provider involved early gives everyone more opportunity to respond before other decisions are made or circumstances change.

Alisha says that also makes claims preparation an important part of the broker-customer conversation.

“What do you need at claim time? Who do I need to call?” she says. “Because you’ve just had something that’s going to put pressure on your business. There may be trauma involved.”

Having that conversation before anything goes wrong means the customer knows who to contact and what needs to happen when an incident occurs.

Where to from here

A customer's business rarely looks the same at renewal as it did a year earlier. Brokers bring the close customer knowledge that helps those changes come to light, while NTI sees the broader patterns emerging across transport, underwriting, claims, recoveries and risk engineering.

Bringing those perspectives together helps brokers and NTI understand what a change may mean for the customer and where specialist support may be useful.

We work alongside brokers across road and sea. Contact your NTI representative to find out more.

Hear more from Andrew Kidd and Alisha Hill on IB Talk, presented in partnership with Insurance Business, as they discuss how insurance providers and brokers help transport and logistics customers navigate disruption and changing risk. Listen to the full episode.

General information only and you should obtain your own professional advice based on your personal and business circumstances. NTI bears no responsibility, and shall not be held liable, for any loss, damage or injury arising directly or indirectly from your use of or reliance on the information in this article. When making decisions about insurance, consider the PDS and TMD on https://www.nti.com.au/. National Transport Insurance is administered on behalf of the insurers by its manager NTI Limited ABN 84 000 746 109 AFSL 237246.