KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES

Smooth sailing marine insurance with Terra Marine

23 September 2021 Constantia Insurance Company
Barry du Plessis, Property & Casualty Portfolio Manager for UMAs and Divisions at Constantia Insurance Company

Barry du Plessis, Property & Casualty Portfolio Manager for UMAs and Divisions at Constantia Insurance Company

Colin Moodley, Managing Director at Terra Marine

Colin Moodley, Managing Director at Terra Marine

Few insurance industries are as complex, high-risk and detail-dependent as marine insurance and the divisions of insurance that fall beneath it.

This is why it’s critical to partner with a marine insurance business that understands the risks within the industry and, even more importantly, will go the extra mile to assess individual client risks and tailor policy cover to their specific risk profile.

Who is Terra Marine?

Terra Marine was founded in March 2020, just as the world slowed to a near-halt due to the onset of the COVID-19 pandemic. Although still a young company, Terra Marine was founded by Managing Director Colin Moodley and an intimate panel of associate specialists, bringing 50 years of collective industry experience under one roof, and over 40 years combined in marine underwriting specifically.

The new marine cargo insurance business forms part of Osprey Underwriting Managers and was fittingly named Terra - meaning ‘land’ – Marine – meaning ‘water’. Underpinned by a passion for Marine Cargo insurance, Terra Marine offer the following innovative solutions:

• Transporters goods in transit insurance: This tailor-made product is for transporters who are moving goods from one place to another. These transporters require specific insurance cover whilst the goods are in their care, custody and control. The policy covers various perils like fire, collision, overturning, theft and hijacking.
• Marine cargo insurance: Marine cargo insurance covers physical loss or damage whilst the goods are on the move either by sea, air, road or rail. This class of property insurance has existed over centuries and includes cover for imports, exports and transits.
• Stock Throughput: A stock throughput policy is a tailor-made marine insurance policy that offers end-to-end cover by insuring the goods throughout the supply chain from production to final destination. One of the main benefits of a stock throughput policy is that it is a seamless policy with no gaps in cover.

Leading the organisation, MD Colin Moodley is backed by his own 20 years of insurance experience, having spent the last decade in business development and new business at Hollard Group. Moodley confidently reports that his team, while small, is a collective of highly qualified, like-minded professionals with a wealth of knowledge and industry experience. The Terra Marine team was recruited for their attitude, willingness to continue learning and developing, and their undivided focus on personal service.

Constantia partners with Terra Marine

Of course, it makes sense that Constantia Insurance should opt to partner with these dynamic new marine players, who have demonstrated their readiness to challenge the market with their personal approach to insurance. It didn’t take long to recognise that, in addition to their experience and expertise, Terra Marine’s values of collaborative and authentic service aligned with Constantia’s, and the partnership was forged in June 2021.

Constantia’s Property & Casualty Portfolio Manager for UMAs and Divisions, Barry du Plessis, is optimistic about the collaboration, saying, “Terra Marine brings significant experience and expertise to the table and together, we look forward to delighting the broker market with our offering.”

For Terra Marine, the exclusive partnership with Constantia Insurance is well-timed and promises to be a perfect match: “We’re delighted to partner with Constantia. We’ve already experienced their proactive approach, which makes it feel like a true partnership, working together with shared value and vision,” says Colin Moodley.

Understanding the marine insurance market – from pre- to post-pandemic

Most of the marine market is filtered through London, via Lloyds. Prior to the COVID-19 pandemic, both the insurance and reinsurance markets had already been heavily exposed to large global claims, through the catastrophic events in China and Lebanon, hurricanes in the USA and wildfires in the USA and Australia. This created a hardening of the marketing, which naturally filters down to the rest of the market.

As the pandemic gripped the world in 2020, the movement of cargo – by air, sea and road – was severely impacted. “Marine follows the fortunes of companies,” says Colin Moodley; as business transactions decrease, so does business in marine insurance. Fewer shipments will translate to fewer policies.

Now emerging from the pandemic, the market has begun to recover. However, locally, the riots in Kwazulu-Natal and Gauteng have impacted the South African market, as orders for imported and exported goods were cancelled or delayed due to the destruction of warehouses and vehicles ready for loading being placed on hold – a further knock-on effect following the pandemic.

Marine insurance tips from the experts – what does Terra Marine say?

Colin Moodley recommends that policyholder’s partner with a broker and UMA who are true experts in the marine cargo market, as this is an intricate and specialised field.

Terra Marine experts also recommend that brokers choose to work with a partner that conducts detailed risk and security management upfront, in order to fully understand and cater to the specific risks. This ensures that the policyholder has the right cover and helps to alleviate complications when claims arise. Having this preventative process in place also ensures that the broker can avoid a professional indemnity issue, for total peace of mind. We encourage brokers to tap into their underwriting management agency (UMA) and insurer to assist with upfront risk analysis.

Colin Moodley also recommends brokers to partner with an insurer or UMA who conducts ongoing risk surveying, over and above upfront analysis, to ensure that cover remains appropriate to the situation, which may change as circumstances change.

In order to further enable both broker and policyholder, Terra Marine have access to one of the most comprehensive and efficient risk analysis services in the South African marine insurance industry. They achieve this by conducting rigorous assessments that include:

• Security systems
• Driver, pilot and operator checks
• Chemical risk assessments
• Professional indemnity risks
• Full risk re-assessments every 3 years
• Fire risk assessments every 6 months

Why choose Terra Marine when procuring a marine insurance solution?

Here are just a few reasons why the broker market should look to partner and engage with Terra Marine:

• Terra Marine is made up of a team of young, ambitious and energetic individuals with a passion for marine insurance, and a long-term commitment to the industry and the Terra Marine vision.

• They are highly focused on developing meaningful relationships, where brokers may rest assured that there is consistent service from a small, but efficient, dedicated team.

• Brokers enjoy direct access to the leading experts in marine insurance. No call centers, no lengthy claim procedures. Terra Marine enables brokers to deal directly with decision-makers, for fast quotes and personal service.

• Terra Marine also offers industry-related training to help brokers fully understand the marine and cargo industries, so that they can better serve their clients.

• Collaborating closely with the broker and policyholder, Terra Marine supports the industry with detailed risk assessments and ongoing risk management, to ensure the policy and underwriting is correct and accurate upfront.

At Constantia, we’re driven by our purpose to enable our partners’ success. Through our authentic relationships with partners like Terra Marine, we’re able to unlock shared value through the co-creation of effective insurance solutions that meet the broker and buyer where they’re at.

Quick Polls

QUESTION

Do you believe this is the toughest period for financial advice in many years?

ANSWER

Yes, it’s hard to navigate the challenges and difficult to adapt. I’m struggling.
No, I have managed to navigate the challenges and have adapted. I’m good.
50/50. I just feel like whether we like it or not, we have to ready ourselves for change… be resilient and scale for the future. It’s not about survival of the fittest anymore but survival of the quickest. We just have to move on with life.
fanews magazine
FAnews October 2021 Get the latest issue of FAnews

This month's headlines

IFA nuggets: Prospecting for clients
FSCA weighs in as universal life policy premiums rocket
No short cuts for the short term broker
Investment lessons worth sharing
Tightening of policy wordings… likely in the future?
Subscribe now