1Research Scholar, SMM, Indian Maritime University (IMU)
2Assistant Professor, SMM, IMU, Indian Maritime University (IMU)
This study explores perceptions of marine cargo insurance among diverse stakeholders, using a sample of 40 respondents. Data collection via structured questionnaires focused on organizational types, experience levels, awareness of insurance terms, satisfaction with insurer communication, and attitudes towards technology in insurance processes. Descriptive analysis revealed a consensus on the essentiality of marine insurance and the importance of technology for transparency and efficiency. The findings highlight a proactive risk management approach in addressing catastrophic events and operational mishaps. The study concludes with recommendations for continuous education programs to enhance awareness, technology integration for streamlined processes, and collaborative risk mitigation strategies. These insights contribute to understanding industry priorities and strategies for resilience and innovation in marine cargo insurance.
Marine insurance is little unique compared to the other insurances as it covers a wide range of risks linked to sea voyages, like damage of ships and goods, due to perils such as storms, fires, and theft (Huebner, n.d.). Marine cargo insurance requires a thorough knowledge of maritime law, vessel types, cargo specifics, and international regulations for safe transportation in global supply chains (Jain, 2021). Marine cargo insurance is vital for global trade, covering risks like false declarations, delays, damage, poor packaging, and operational oversights, all of which can lead to financial losses (Tseng et al., 2015). Common challenges include land traffic accidents, improper cargo arrangement, disputes over Bill of Lading, theft, commercial fraud, and shipping guarantee issues. These risks highlight the importance of comprehensive insurance coverage in mitigating potential financial losses and ensuring smooth operations in maritime trade.
LITERATURE REVIEW
The paper starts with a literature review focused on existing articles and academic theses in marine insurance, aiming to identify gaps in scholarly literature for further exploration. Diana and Ml (2022) analyse marine insurance's importance in ship construction, operation, and cargo management, emphasizing insurance and reinsurance's role in mitigating risks. Devadasan et al. (2020) discuss marine insurance's implications in India's financial sector, especially regarding multinational insurers and regulatory frameworks. Ravichandran (2001) explores trends in mutual P&I Clubs amidst industry shifts and competitive pressures. Huebner (n.d.) examines the US marine insurance landscape, highlighting trends like self-insurance. Bennett (2000) focuses on P&I Clubs' regulatory dynamics, emphasizing risk regulation and trust-building. Tseng et al. (2015) propose cargo damage risk management strategies in Taiwan's freight forwarding. Levy (2012) navigates historical and legal aspects of marine insurance, addressing legal complexities and disputes. Wong (1975) discusses legal challenges in containerized shipping, advocating for international standards. Brown (2012) explores policyholders' attitudes toward insurance companies, while Kavitha (2012) delves into customer perceptions in insurance, contributing to our understanding of marine insurance's regulatory, operational, and customer-centric aspects globally and regionally.
METHODOLOGY
The study is aimed to explore the perceptions of marine cargo insurance among diverse stakeholders like exporters, freight forwarders, and industry professionals. A sample of 40 respondents was chosen due to practical constraints, with data collection focusing on Cochin-based individuals. The data collection involved a structured questionnaire covering various aspects of marine cargo insurance such as respondent backgrounds, industry affiliations, experience levels, awareness of insurance terms, coverage needs, satisfaction with insurer communication, and views on online processes, technology's role, and a risk-ranking exercise. A total of 50 responses were received, of which 40 valid responses were analysed using descriptive analysis in SPSS. Charts, frequency tables, and mean values of Likert scale ratings were used due to the small sample size, providing insights into stakeholders' perceptions and highlighting areas for potential improvement in marine cargo insurance practices. The detailed Data analysis as follows
The most common types of organizations based on the provided data are "Freight Forwarding" and "Exporter/Importer," each comprising 30.8% of the valid responses. “Clearing and Forwarding" and "Steamer Agent" are less common, with frequencies of 1 and 6, respectively. The "Other" category represents 20.5% of the valid responses, indicating a significant portion of organizations that do not fit into the specified categories. This analysis provides insights into the distribution of different types of organizations within the dataset and their relative frequencies.
The majority of individuals in the dataset have more than 8 years of experience, comprising 84.6% of the valid responses. The "4-8 years" category represents a smaller proportion, indicating that there are fewer individuals with mid-level experience compared to those with either less than 3 years or more than 8 years of experience.
This analysis provides insights into the distribution of experience levels within the dataset. It shows that the majority of individuals have extensive experience (more than 8 years), which can be valuable for understanding the expertise and composition of the group being studied.
Table 1: Awareness on Marine Cargo insurance
Source: Analysing the Primary Data
Overall, the descriptive statistics suggest that while there is variation in awareness levels among respondents (as indicated by the standard deviation), the average awareness level is relatively high (mean of 4.08). This is a positive indication that respondents generally have a good understanding of the terms and conditions of marine insurance, with some variation in the extent of their awareness.
Table 2: Essentiality of Marine Cargo Insurance
Source: Analysing the Primary Data
Overall, the descriptive statistics suggest a high level of agreement among respondents that marine cargo is an essential element, as indicated by the high mean rating and relatively low standard deviation.
This strong agreement implies that respondents view marine cargo as a crucial component within the context being surveyed.
Table 3: Importance of Marine Cargo insurance to Specific risks
Source: Analysing the Primary Data
The mean rating of 4.85 indicates strong agreement among respondents regarding the necessity of specific coverage in marine insurance policies for tasks like theft, damage, loading/unloading incidents, or natural disasters. This suggests widespread support for tailored coverage. The low standard deviation of 0.366 signifies minimal variability in opinions, reinforcing the consensus on the importance of such coverage. A low standard deviation indicates that ratings are closely clustered around the mean, reflecting a clear consensus among respondents regarding the importance of addressing specific risks in marine insurance.
Table4: Communication and Support from Insurer
The descriptive statistics reveal that respondents' satisfaction with the communication and support from their insurer varies, with a moderate average satisfaction level. While the mean indicates overall satisfaction, the higher standard deviation suggests that some respondents have stronger positive or negative feelings about the communication and support provided. Insurers may use this information to identify areas for improvement in their communication and support strategies to enhance overall customer satisfaction.
Table 5: Perceptions on Online Processing of Marine Cargo Insurance
The descriptive statistics indicate a range of opinions among respondents regarding whether online is a better process for obtaining marine insurance. While the mean leans towards agreement, the higher standard deviation suggests that opinions are more varied, with some respondents strongly supporting online methods while others strongly disagree.
Perceptions on online across Organization Level
Table 6: Perceptions on online across Organization Level
Table 7: Perceptions on Technology and Transparency
Overall, the descriptive statistics indicate a strong agreement among respondents that technology plays an important role in improving the transparency and efficiency of marine cargo insurance. The relatively low standard deviation suggests that there is a general consensus among respondents regarding the impact of technology in this context.
The ranking of specific marine risks based on respondents' perceptions provides valuable insights into the critical concerns within marine cargo transportation. Here's a summary of the rankings and their implications:
Rank 1 highlights the paramount importance placed on mitigating catastrophic events such as natural disasters and accidents/damage incidents. These events pose significant threats to cargo transportation, necessitating robust risk management strategies. Moving to Rank 2, the focus shifts slightly towards operational mishaps like accident/damage incidents. This indicates a continued emphasis on safeguarding against unforeseen damages and disruptions, with fire and explosion risks also remaining significant concerns. Rank 3 introduces geopolitical and conflict-related challenges, emphasizing the recognition of war risk/strike incidents as critical factors affecting marine cargo operations. This underscores the need for risk mitigation strategies that account for such external disruptions. Overall, these rankings demonstrate a nuanced understanding of the diverse risks faced in marine cargo transportation. They guide insurers and stakeholders in prioritizing risk mitigation efforts, enhancing security measures, and ensuring operational resilience in the face of potential challenges
SUMMARY
The analysis of specific risks, organizational types, experience levels, awareness, satisfaction with insurer communication, and opinions on online processes and technology in marine cargo insurance provides a comprehensive view of industry perceptions. Rankings emphasize protection against catastrophic events, highlighting the industry's recognition of these risks as top priorities. High awareness levels indicate a strong foundation for making informed choices. Satisfaction with communication varies but leans positive, signalling areas for improvement. Opinions on technology show a growing acceptance, offering opportunities for efficiency. Overall, the sector demonstrates a proactive approach to risk management, emphasizing major risks, experienced professionals, and technological solutions. Though there is a mixed response to the study, largely its understood marine insurance and the claims relating to marine insurance is a very convoluted process.
REFERENCE
John Pius*, Dr. M. Sekar, An Empirical Analysis of Marine Cargo Insurance – A Study on Customer’s Perspective, Int. J. Sci. R. Tech., 2025, 2 (3), 421-425. https://doi.org/10.5281/zenodo.15075657
10.5281/zenodo.15075657
