Marine insurance is crucial for businesses involved in international shipping, as nearly 90% of global trade is transported by sea, according to OECD research. This demand for maritime transport is particularly significant in South Africa, where shipping supports 70% of the country’s trade and is a major contributor to the economy, as noted by Statista. As international trade expands, so do the associated risks, making comprehensive marine insurance more essential than ever to protect these vital operations.
The Complexities of Marine Insurance
Marine insurance covers the diverse risks faced by vessels and cargo during transport, but it’s not a one-size-fits-all solution. Challenges like unpredictable weather, piracy, and geopolitical tensions, such as recent attacks on merchant vessels in the Red Sea, highlight the importance of comprehensive coverage. These complexities must be considered when choosing the right insurance policy. Marine insurance is a crucial safety net for South African businesses engaged in international shipping.
Risks in Marine Transport
South Africa’s shipping sector faces risks ranging from natural disasters to cyberattacks. The vulnerability of international shipping routes, including those impacted by piracy in regions like the Gulf of Guinea, underscores the need for tailored insurance.
Given the country’s reliance on maritime trade, businesses need coverage that addresses both traditional and emerging threats.
Cargo Coverage
Cargo coverage is vital to protect businesses from the financial impact of lost or damaged goods. As South African companies rely heavily on imports and exports, ensuring adequate coverage for cargo in transit is critical. This is especially true when shipping through high-risk regions or handling valuable goods.
Selecting the Right Marine Insurance Policy
Choosing the right policy requires understanding the specific needs of a business and its trade routes. Whether it’s protection against piracy, natural disasters, or cyber risks, companies must consider add-ons such as war risk insurance to ensure comprehensive protection.
At RBS, we understand the unique challenges South African businesses face in marine transport. We offer expert guidance to help you select the right coverage and protect your operations in this complex environment.
About RBS
Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebrating 25 years in business this year, our growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. Our company covers various services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).