For companies that ship goods from local routes to cross-country deliveries, part of a thorough risk management strategy includes insuring in-transit freight. Working through Managing General Agents, also known as cargo insurance MGAs, can help both the insurer and the insurance provider. MGAs are usually given authority by the insurer to make decisions about underwriting insurance applications. They also typically set rates and manage most claims.
An MGA is frequently closer to the client and has specialized knowledge about the unique needs of the insured’s industry. Other benefits often include:
• The convenience of working with a local representative rather than someone at a remote headquarters.
• Quick turnaround for getting coverage or claims addressed.
• Terms and rates may be more competitive when MGAs can pass along discounts from the insurers because of business volumes and taking over a portion of the administrative tasks and costs.
• For clients located in remote regions, a wider variety of insurance options can be made available.
Because agents for specialized insurance programs such as cargo insurance often need specific industry knowledge, working with cargo insurance MGAs can be advantageous for insured companies as well as insurers. The MGA’s in-depth understanding of specialized business niches can open up remote markets to larger insurers to add options for clients looking to manage their transportation risks.