Original Research

Trends in weather-related marine cargo insurance claims: A South African perspective

Francois du Plessis, Leila Goedhals-Gerber, Joubert van Eeden
Journal of Transport and Supply Chain Management | Vol 17 | a954 | DOI: https://doi.org/10.4102/jtscm.v17i0.954 | © 2023 Francois du Plessis, Leila Goedhals-Gerber, Joubert van Eeden | This work is licensed under CC Attribution 4.0
Submitted: 16 May 2023 | Published: 31 July 2023

About the author(s)

Francois du Plessis, Department of Logistics, Faculty of Economic and Management Sciences, Stellenbosch University, Stellenbosch, South Africa
Leila Goedhals-Gerber, Department of Logistics, Faculty of Economic and Management Sciences, Stellenbosch University, Stellenbosch, South Africa
Joubert van Eeden, Department of Industrial Engineering, Faculty of Engineering, Stellenbosch University, Stellenbosch, South Africa

Abstract

Background: Marine cargo insurance covers the loss or damage to goods while in transit. It is an important supply chain risk management tool for organisations involved in international trade, especially in regions where cargo insurance penetration is low, and protection gaps are high. However, marine cargo insurance faces new challenges because of increasing frequency and severity of extreme weather events. This study focuses on the case of South Africa: a developing country with a strategic role in connecting Africa with the global market.

Objectives: The research analyses the trends, differences, and seasonality of weather-related marine cargo insurance claims in South Africa from 2013 to 2022.

Method: Statistical and general claims analysis was performed on a master dataset of 17 727 claims to answer the three research questions related to the research objectives.

Results: The results show that weather-related marine cargo insurance claims have been increasing over the past decade, creating challenges and disruptions to the supply chain network in South Africa. Furthermore, this research shows that weather-related claims have higher average values and follow a seasonal pattern compared with non-weather-related events on supply chains in South Africa.

Conclusion: This research reveals the growing impact of weather-related events in South Africa.

Contribution: It provides practical and theoretical implications for supply chain managers and insurers to manage weather-related risks more effectively and proactively contributes to the literature by offering empirical insights from a developing country perspective, and provides considerations for future work.


Keywords

claims; developing country; marine cargo insurance; supply chain risk management; weather events

JEL Codes

G22: Insurance • Insurance Companies • Actuarial Studies; M10: General; Q54: Climate • Natural Disasters and Their Management • Global Warming

Sustainable Development Goal

Goal 13: Climate action

Metrics

Total abstract views: 1453
Total article views: 1160

 

Crossref Citations

1. The impacts of climate change on marine cargo insurance of cold chains: A systematic literature review and bibliometric analysis
Francois du Plessis, Leila Goedhals-Gerber, Joubert van Eeden
Transportation Research Interdisciplinary Perspectives  vol: 23  first page: 101018  year: 2024  
doi: 10.1016/j.trip.2024.101018