Global insurance brokerage Hub International announced an exclusive referral and broker program partnership with Mas Seguros.
The partnership, in effect throughout the U.S., Canada and Mexico, will bolster Hub’s cross-border trucking capabilities. Mas Seguros is the largest trucking insurance broker in Mexico.
Long-haul trucking is historically a difficult line to write, and the logistics are getting increasingly intricate.
One major factor is the sheer distances trucks travel, which increases the risk of accidents, excessive vehicle wear and tear, and cargo theft.
Cargo theft fell 30% last year, largely because thieves saw more opportunity in stealing cars, finds a report by Équité Association. But as governments and law enforcement start to come down on car theft, Canada’s P&C insurers expect the thieves may go back to stealing trucks and their cargo.
Cargo theft reached an all-time high in 2022, with an unrecovered theft value of $134.8 million.
These extensive road exposures lead to higher insurance premiums, and to insurers withdrawing coverage for both liability and physical damage.
“Organizations face regulatory compliance issues, crime, product damage, catastrophic weather events and accidents,” Hub writes in a press release.
On the topic of regulatory compliance, trucking companies must meet national and state insurance requirements, such as carrying a minimum amount of liability insurance, which adds to their financial burden.
Companies with poor safe driving records or frequent driver violations often face even higher premiums.
“As a result, there is an emerging transportation and logistics need to manage risk and insure freight, property and assets while transporting goods into Mexico for manufacturing and then back to the U.S. and Canada,” adds Hub’s release.
“Due to changing global political relationships and policies, there has been a significant move for manufacturing operations to Mexico, which comes with increased risk and insurance challenges when transporting goods cross-border.”
The partnership also allows companies to friendshore or nearshore their production — a move meant to reduce supply chain disruption.
Feature image by iStock.com/Marcus Lindstrom
