Learn How to Address Evolving Transportation Risk With Gallagher Bassett

Charlie Lamberta (CL): New and evolving risks are leading to an increase in complexity and severity, often escalated by litigation or the regulations set for specific industries and jurisdictions. From a claims perspective, this trend can be detrimental to a program as rising claims costs require more resources, including investigative capabilities and a depth of management expertise, and inhibit overall growth.

The transportation industry will experience more demand to keep pace with the global economy, but to contain claims costs, they need to implement claims and risk management strategies that enhance operational safety and reduce exposures to damages and high-cost litigation. Then, not so much a trend as it is a priority, but the claimant/insured experience remains key to maintaining a competitive edge in today's landscape. Transportation and trucking companies need to work toward resolution with their customers' goals in mind, whether this is protecting their brand or providing reliable service.

Paul Cho (PC): As a global risk management company, we have built-in capabilities that help us stay attuned to the latest industry trends, and we currently see a lot of similarities across regions and industries related to developing risks. Transportation companies are facing continued pressures with demand, given the need for timely deliveries and the quantity of goods being moved. Widespread access to technology can help streamline operations and counter increasing costs. However, threats are also becoming more sophisticated, from cargo theft and cyberattacks to instances of fraud, including individual claimants and organized schemes. These developments contribute to the increased severity that Charlie noted, which is why implementing comprehensive risk management strategies is so critical to minimizing incidents and their impact.

Anthony Smith (AS): To echo Paul's thoughts, threat actors are continuously elevating their approach by using new technology and tactics to target shipments, transportation companies, and the industry at large. Cargo theft isn't 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 the types of goods that criminals are targeting. 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.

Cyber threats within the marine insurance market generally fall into two distinct categories: shore-based exposures and shipboard navigation-related risks. Ransomware and extortion is the most prevalent threat, where attackers target terminal operating systems (TOS). The other, more significant concern is the risk of interference with shipboard navigation, where attackers transmit counterfeit signals to manipulate a vessel's GPS potentially leading to groundings, collisions, or even drawing vessels into hostile territorial waters.

CL: A data-driven approach provides the greatest value to risk managers and claims professionals, as it can inform decision making and lead to positive results, including reduced claim duration and improved claimant satisfaction. With immediate access to critical claims and risk information, organizations can prepare for adverse events ahead of time and, better yet, prevent them from happening in the first place. Risk managers can assess these insights to expedite claims handling, root out potential fraud, and streamline their operations by applying targeted risk management solutions.

PC: From advanced safety features and predictive analytics to autonomous trucks and electric vehicles, technology is creating safer, faster, and smarter transportation practices and empowering businesses to evolve quickly. AI-powered tools can help optimize operations in the field, allowing organizations to deliver more quickly and reliably for their customers and reduce risk before an incident occurs.

On the claims management front, AI can further enable use of data, support and inform decision making, and automate or simplify administrative tasks for both risk managers and claims professionals.

To be the most effective, AI and other technologies should be used in tandem with human expertise to influence outcomes like cost, duration, and claimant satisfaction, for example. The goal should be to create a comprehensive approach to the claims lifecycle, ultimately saving time and minimizing the total cost of risk.

AS: Tracking and monitoring technologies across the ocean and inland marine markets are providing clients with a transparent way to reduce their risk exposures and mitigate losses. This is particularly valuable for clients who face theft risks within their supply chains and for those transporting temperature‑sensitive cargo:

• Active movement monitoring has enabled the identification of bad actors within the transit chain, allowing clients to remove those parties from handling their cargo.
• For temperature‑sensitive goods, clients have been alerted to variations that could lead to damage and have been able to take real‑time action to intercept cargo in transit and address these issues before a loss becomes inevitable.

CL: We consistently stay attuned to the market, our clients' needs, technological advancements, and other developments to further enhance how we operate. As a claims and risk management partner, we provide two primary services:

• One is loss control, meaning how we monitor and work to prevent incidents before they have the chance to occur. We employ targeted risk management strategies and data-driven insights to assess how our clients can make their operations safer and more efficient.
• The second is claims management, which enables us to mitigate the impact of risk for our clients when an incident does occur. 

We lead with expertise, and our people are our most valuable asset, as they bring a wealth of experience from both the transportation and insurance industries. They're equipped with a global scale of resources and technology solutions that empower them to provide a level of service that our clients not only trust but rely on.

AS: When theft, fraud, or an accident occurs, navigating this complex patchwork requires deep claims management expertise and global reach. For companies facing these challenges, the solution becomes clear: Partner with experts who possess both the international footprint and the specialist knowledge required to protect their interests. By leveraging the combined resources of Gallagher Bassett and W K Webster, our clients can achieve the best possible results following an incident. We use our scale to our advantage, drawing on global technology platforms and integrated resources to deliver services that are comprehensive and efficient, while working to protect our clients' brand and reputation, create partnerships rooted in collaboration, and maximize cost savings when it matters most.