Revolutionizing Cargo Protection: New Offerings from Flexport Insurance Solutions

Introduction: A New Era in Logistics Insurance

In the ever-evolving world of global trade, protecting your cargo is more crucial than ever. As we navigate the complexities of international shipping, the need for comprehensive and flexible insurance solutions has never been more apparent. Today, we're excited to explore the latest innovations from Flexport Insurance Solutions (FIS) that are set to revolutionize the way businesses approach cargo protection.

Since its inception in 2019, FIS has been at the forefront of providing better, more affordable, and more appropriate insurance options for importers of all sizes. As part of Flexport's Trade and Financial Services division, FIS has recently unveiled a suite of new products and services that take their offerings to the next level. These updates not only enhance the protection available to businesses but also streamline the process of obtaining and managing insurance coverage.

Let's delve into these groundbreaking developments and explore how they can benefit your business in the ever-changing landscape of global logistics.

Trade Credit Insurance: A New Frontier in Financial Protection

One of the most exciting additions to the FIS portfolio is Trade Credit Insurance (TCI). This innovative coverage option is designed to protect businesses from the financial risks associated with B2B transactions.

What is Trade Credit Insurance?

Trade Credit Insurance is a powerful financial tool that covers unpaid credit balances from your B2B sales, typically up to 90% of the amount owed. Whether you're operating in domestic or export markets, TCI helps minimize the risks associated with customer insolvency or delayed payments.

At its core, TCI acts as a safeguard against the potential impact of customers being unable to pay due to various reasons, including insolvency or protracted default. This level of protection is invaluable in today's uncertain economic climate.

How Does Trade Credit Insurance Work?

Trade credit insurance carriers leverage an extensive network of data on millions of private and public companies worldwide to evaluate credit risks. This wealth of information serves multiple purposes:

• It helps our customers grow their business sustainably
• It accelerates the credit evaluation process
• It reduces both concentration and market risks

Benefits of Trade Credit Insurance

The advantages of incorporating TCI into your risk management strategy are numerous:

1. Reduced Financial Risk: By insuring accounts receivable against non-payment, you're protecting your bottom line.
2. Sustainable Growth: TCI enables you to expand existing business and explore new opportunities with confidence, thanks to accelerated credit evaluation and deal closing processes.
3. Improved Borrowing Terms: Banks often look favorably on TCI as it reduces concentration and default risk, potentially leading to better borrowing terms.
4. Enhanced Decision Making: Gain critical insights about current and new customers, allowing you to make more informed decisions about credit extensions and limits.
5. Built-in Collection Services: Most policies include access to collection services, providing an additional layer of protection in the event of a loss.
6. Streamlined Credit Management: Utilize online platforms to efficiently request new or manage existing credit limits.

By offering Trade Credit Insurance, FIS is providing businesses with a powerful tool to navigate the complexities of B2B transactions with greater confidence and security.

The Flexport Insurance Solutions App: Insurance at Your Fingertips

In an exciting collaboration with Breeze, FIS has launched an all-new Insurance App. This innovative platform represents a significant leap forward in making cargo insurance accessible to all shippers, regardless of their status as existing Flexport customers.

Key Features of the FIS App

The new app leverages Breeze's cutting-edge AI and machine-learning models to streamline the entire insurance process. Here's what users can expect:

• Effortless Onboarding: The app simplifies the process of getting started with cargo insurance.
• Quick Quoting: Obtain fast, accurate quotes for your shipments.
• Easy Ordering: Secure coverage with just a few taps on your device.
• Comprehensive Coverage Options: Choose from a range of insurance solutions, including per shipment coverage, annual policies, and trade credit insurance.

This digital-first approach to insurance aligns perfectly with FreightAmigo's commitment to leveraging technology to enhance the logistics experience. By making insurance more accessible and user-friendly, we're empowering businesses of all sizes to protect their cargo effectively.

Instant Premium Quotes: Transparency and Control at Booking

In response to the growing demand for greater transparency and control over insurance costs, FIS has introduced instant premium quotes at the booking stage. This feature is being rolled out in iterative stages, with the first phase already available to customers.

How Instant Premium Quotes Work

Currently available through the seller portal, this service caters primarily to small and medium-sized businesses. Here's how it operates:

1. Shippers input their own determination of cargo value for the shipment.
2. The system automatically calculates coverage quotes based on this input.
3. Quotes are comprehensive, including the inputted cargo value, freight charges, and customs and duties.

This feature provides several key benefits:

• Immediate Cost Visibility: Shippers can see insurance costs upfront, eliminating surprises at the invoicing stage.
• Informed Decision Making: With clear cost information, businesses can make more informed choices about their insurance coverage.
• Streamlined Booking Process: Integrating insurance quotes into the booking flow simplifies the overall shipping process.

By offering instant premium quotes, FIS is enhancing transparency and giving shippers more control over their logistics costs. This aligns perfectly with FreightAmigo's mission to create a more efficient and user-friendly Digital Logistics Platform.

The Impact on the Logistics Industry

These new offerings from Flexport Insurance Solutions represent a significant step forward in the logistics industry. By combining innovative insurance products with cutting-edge technology, FIS is addressing some of the most pressing challenges faced by shippers today:

1. Risk Mitigation in an Uncertain World

With global trade facing numerous challenges, from geopolitical tensions to natural disasters, comprehensive insurance coverage is more important than ever. The introduction of Trade Credit Insurance provides an additional layer of protection against financial risks, allowing businesses to operate with greater confidence in uncertain times.

2. Democratizing Access to Insurance

The new FIS app makes high-quality cargo insurance accessible to a wider range of businesses, including those who may not be traditional Flexport customers. This democratization of insurance services helps level the playing field for smaller businesses competing in the global marketplace.

3. Enhancing Transparency and Control

By offering instant premium quotes at the booking stage, FIS is bringing much-needed transparency to the logistics insurance process. This empowers shippers to make more informed decisions about their cargo protection and better manage their overall shipping costs.

4. Streamlining the Logistics Process

The integration of insurance services into the broader logistics workflow represents a step towards a more seamless and efficient shipping experience. This aligns with the industry's broader move towards Digital Logistics Solutions that simplify complex processes.

FreightAmigo's Perspective: Embracing Innovation in Logistics Insurance

As a Digital Logistics Platform committed to transforming the way organizations experience logistics, we at FreightAmigo are excited about the innovations being introduced by Flexport Insurance Solutions. These developments align closely with our vision of creating a more efficient, transparent, and user-friendly logistics ecosystem.

The introduction of Trade Credit Insurance, the launch of a dedicated insurance app, and the implementation of instant premium quotes all contribute to a more comprehensive and accessible insurance landscape. These tools empower businesses of all sizes to better protect their cargo and financial interests, which is crucial in today's complex global trade environment.

We believe that by embracing these innovative insurance solutions, businesses can:

• Reduce their exposure to financial risks
• Make more informed decisions about their shipping and insurance needs
• Streamline their logistics processes
• Gain a competitive edge in the global marketplace

As we continue to develop our Digital Logistics Platform, we're inspired by these advancements in the insurance sector. They reinforce our commitment to integrating cutting-edge technologies and services that add value to our clients' supply chain operations.

Conclusion: A New Era of Logistics Protection

The new offerings from Flexport Insurance Solutions mark a significant milestone in the evolution of logistics insurance. By combining innovative products like Trade Credit Insurance with user-friendly digital tools and transparent pricing, FIS is setting a new standard for cargo protection in the digital age.

As we at FreightAmigo continue to expand our Digital Logistics Platform, we're excited about the possibilities these advancements bring to the table. They represent a step towards a more secure, efficient, and accessible global trade environment – goals that align perfectly with our mission to redefine the logistics experience.

We encourage businesses of all sizes to explore these new insurance options and consider how they might enhance their risk management strategies. In an increasingly complex and interconnected world, having the right protection in place is not just a safety measure – it's a competitive advantage.

As we move forward, we'll continue to monitor developments in the logistics insurance space and explore ways to integrate these innovations into our Digital Logistics Solution. Our commitment remains steadfast: to provide our clients with the tools and services they need to navigate the challenges of global trade with confidence and ease.

The future of logistics is digital, and with these new insurance offerings, it's also becoming more secure and accessible than ever before. We're excited to be part of this transformation and look forward to helping our clients make the most of these new opportunities.