Cargo owners now have covert protection: Willis introduces Undercover Service
In a bid to offer cargo owners worldwide comprehensive coverage for geopolitical risks, Willis, a WTW business listed on NASDAQ (WTW), has launched a new $200 million insurance facility named Undercover. This innovative product, developed in partnership with Markel, consolidates multiple types of coverage—including cargo loss, political violence, war on land, terrorism, and confiscation—into one single facility [1][2][3].
The facility addresses key geopolitical exposures that cargo owners face as they transport goods through politically unstable or violent regions globally. These exposures include war, terrorism, political violence, and government confiscation. By consolidating these risks under one policy, Undercover reduces coverage gaps and minimizes disputes over the classification or cause of losses [1][2][4].
One of the standout features of Undercover is its ability to protect cargo owners from fluctuating insurance costs that typically arise from changing national risk ratings. This is especially important because cargo insurance premiums often vary with these risk ratings. The solution provides cost certainty in an uncertain geopolitical landscape [1][2][3][4].
Ben Abraham, Global CEO of Willis Marine, stated that Undercover meets the challenges cargo owners face during heightened geopolitical risks by offering a clear, comprehensive approach to coverage that helps them navigate uncertainty and volatility in global supply chains [1][2][3][4]. Markel highlighted that the product supports cargo owners by helping them manage disruptions to trade routes and the resilience of supply chains caused by geopolitical instability [3].
The coverage offered by Undercover is customized based on the individual needs of the client. For more information on the risks covered by Undercover, visit: https://www.wtwco.com/en-gb/solutions/products/undercover.
Meanwhile, Willis has also introduced a new Professional Indemnity solution named ProXS with a CCY40m capacity, and an enhanced investment management insurance solution called IMI Plus, designed to meet the needs of all kinds of asset managers, including wealth managers, hedge funds, and private equity firms [5].
The global transportation and logistics industry is adapting to a fast-moving landscape of regulations, trade tensions, and political instability. Despite these challenges, the sector is taking a positive approach and looking to capitalize on opportunities [6].
In summary, Undercover is a $200 million cargo insurance facility that covers a broad spectrum of geopolitical risks such as war on land, terrorism, political violence, and confiscation, providing tailored, comprehensive, and cost-stable protection to cargo owners worldwide in times of political uncertainty [1][2][3][4].
Insurtech companies, like Willis and Markel, are leveraging their expertise in finance and business to develop innovative solutions that address the regulatory challenges and uncertainties within the global transportation and logistics industry. For instance, Undercover, a new insurance facility developed by Willis, offers tailored, comprehensive, and cost-stable protection against a variety of geopolitical events, such as war, terrorism, political violence, and confiscation, catering to the needs of cargo owners worldwide.
