October 12, 2023
New Offerings From Flexport Insurance Solutions
Flexport Insurance Solutions (FIS) was created in 2019 as another way we could support our customers when we saw a growing need for better, more affordable, and more appropriate insurance options for importers of all sizes. Part of our Trade and Financial Services division alongside Customs and Trade Advisory and Flexport Capital, FIS has recently unveiled several new products and services that take our offerings to the next level.
These updates range from a new coverage option, to a collaboration with Breeze on an app offering to provide coverage for clients who may not already ship with Flexport, and on to giving customers the ability to get instant premium quotes at booking, eliminating the chance of surprises at invoicing.
What is Trade Credit Insurance
Our newest coverage offering is trade credit insurance (TCI), which covers unpaid credit balances from your B2B sales, typically up to 90% of the amount owed. Whether you choose to protect your domestic or export business, you are able to minimize the risks associated with a customer’s insolvency or delayed payment.
Trade credit insurance is a powerful financial tool designed to protect B2B merchants from the risks associated with providing their goods on credit terms. It safeguards you from the potential impact should a customer be unable to pay for a variety of reasons including insolvency or protracted default.
Trade credit insurance carriers use a network of data on millions of private and public companies all across the world to evaluate credit risks. This information can assist our customers to sustainably grow new business, accelerate the credit process, and reduce both concentration and market risks.
Benefits of trade credit insurance:
- Reduce financial risk by insuring accounts receivable from non-payment.
- Grow existing and new business sustainably with accelerated credit evaluation and deal closing.
- Likely receive better borrowing terms from banking agreements since banks look favorably on TCI as it reduces concentration and default risk.
- Obtain critical information about current/new customers that allows you to make better decisions about when to extend credit and at what limits.
- Gain easy access to collection services, which are built into most policies. In the event of a loss the trade credit insurance company can attempt to collect on the past-due balance.
- Streamline credit practices with an online platform to request new, or manage existing, credit limits.
Flexport Insurance Solutions App Launch
As part of our ongoing relationship with Breeze, FIS launched an all-new Insurance App this summer. This new offering allows any shipper, regardless of their status as an existing Flexport customer, to easily obtain industry-specific insurance for their cargo. The new app leverages Breeze’s AI and machine-learning models and technology to streamline the process of onboarding, quoting, and ordering coverage from our selection of per shipment, annual policy, and trade credit insurance offerings.
Instant Premium Quotes
The goal was simple—to offer customers greater control over their insurance costs at booking. Implementation of this service is happening in iterative stages, with stage one currently in place and available today.
Instant premium quotes are available today from our seller portal, serving small and medium-sized businesses. Calculated automatically once the shipper inputs their own determination of cargo value of the shipment, coverage quotes are inclusive of that inputted cargo value, freight charges, and customs and duties.
Flexport is dedicated to continuing to support our customers with extended services like Flexport Insurance Solutions. For more information on the offerings discussed today, please visit the FIS homepage or reach out to one of our cargo insurance specialists for information on how we can best help you protect your shipments.
Insurance is offered through Flexport Insurance Solutions, LLC ("FIS"), a licensed insurance producer (Illinois License No. 3001047128, California License No. 6001029). Insurance is not available in all countries. Check with a licensed FIS representative for availability.
For term coverage, FIS acts as an insurance broker and seeks quotes from multiple insurance carriers with A.M. Best ratings of “A” or higher who actually underwrite and issue coverage. Per shipment coverage is underwritten and issued by Navigators Insurance Company.
The contents of this blog are made available for informational purposes only and should not be relied upon for any legal, business, or financial decisions. We do not guarantee, represent, or warrant the accuracy or reliability of any of the contents of this blog because they are based on Flexport’s current beliefs, expectations, and assumptions, about which there can be no assurance due to various anticipated and unanticipated events that may occur. This blog has been prepared to the best of Flexport’s knowledge and research; however, the information presented in this blog herein may not reflect the most current regulatory or industry developments. Neither Flexport nor its advisors or affiliates shall be liable for any losses that arise in any way due to the reliance on the contents contained in this blog.
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