Rising cargo theft demands new strategies from insurers

Cargo theft is surging worldwide, posing a growing threat to supply chains and consumer confidence, according to WK Webster, a subsidiary of Gallagher Bassett – and captives must learn to cope with this surge.

As eCommerce accelerates and global distribution networks become more complex, the cargo and marine insurance industry faces increasing pressure to combat sophisticated criminals in a complex cross-border environment.

“Cargo theft is not a new issue; it’s a challenge we’ve helped clients recover from for more than 160 years. But what is new is the level of sophistication and types of goods that criminals are targeting,” says Anthony Smith, chief executive of WK Webster. 

“No longer are only high-value items at risk. Evolving black market trends have led to lower- value products being targeted more frequently, and we’ve also seen a notable escalation in theft during inland transit.”

In one recent case, Smith’s team resolved a complex international claim for a captive client involving a shipment of beverages across Europe worth € 400,000.

“This shipment was targeted by organised fraudsters, who impersonated a legitimate haulage company, going so far as to replicate real employee names and credentials,” says Smith.

“Although both the haulier and a rail terminal denied responsibility, we initiated legal proceedings to facilitate negotiation. Our team’s combination of legal acumen, negotiation skills, and international presence, led to a successful resolution, with the haulier agreeing to cover the full loss—excluding non-recoverable duties under Dutch law.”

According to Smith, insurers, captives or corporates that operate in multiple jurisdictions must contend with the additional complexities brought on by a patchwork of legal systems, languages, and standards of evidence.

“When cargo theft occurs, navigating this complex patchwork requires deep claims management expertise and global reach,” Smith noted.

“For companies facing into this challenge, the solution becomes clear: Partner with experts who possess both the global reach and the specialist knowledge required to protect their clients’ interests.”

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