Logistics Liability Insurance Product Development

With the rapid development of world economic and trade as well as modern science and technology, the logistics industry, emerging as a new service section of national economy, has been booming throughout the whole world. To learn, study, develop and utilize logistics becomes an irrevocable trend. In China, since those enterprises who are providing logistics services are still in the starting step, they will face all kinds of unpredictable risks. How to control those unknown risks? The answer is to apply for insurance especially the liability insurance to protect the enterprise itself, it is more and more adopted by logistics enterprises as one of the ways to control and manage daily risks.Nevertheless, the development of logistics liability insurance product is not that smooth as expected in China. The liability insurance covers the legal and contractual liability of the insured, in that way it depends to most extent on the laws and regulations, while the logistics laws and regulations in China is still on the way toward completing. Besides, the huge diversity of different logistics enterprise, the inflexible pricing system for premium and insufficient coverage range, all these factors lead to the awkward situation of the developing of logistics liability insurance product.How to develop the logistics liability insurance has been one of the focuses among professional personnel in the industry of logistics and insurance. The logistics liability insurance product developed by local insurance companies themselves has the similar defects because the companies plagiarize the policy from each other and those products haven't existed for long enough time to pass through all challenges. To completely copy foreign policy cannot solve the problems facing us either, on the other way that will cause a lot of unnecessary confusions because of the different laws and regulations the policy clauses basing on.By introducing the risk management theory and risk identification technology as well as incorporating the premises of acceptable risks, this paper sorts out those particular risks facing local logistics enterprises, some of them can be covered by insurance company and some can be avoided by corresponding stipulations established by the enterprise it self, thus helping those enterprises to better understanding the nature of liability insurance covers. Subsequently, this paper investigates and analyzes in depth the factors that have caused the current situation and slow development, and also explain the typical policy clauses. In that way, the insurance company will have a profound knowledge on the development of logistics liability insurance, and based on that they can launch the long-term layout for insurance product development.The key to develop the logistics liability product is new product. A good product will bring the whole market to have a rapid and healthy growth, it also will speed up the creative researches of those insurance companies. So after the analysis into the acceptable risks of the logistics liability insurance and market situation, this paper focuses on raising point of view and suggestion to some important aspects in the stage of product development,such as the precise pricing system of the product and the developing principle of the insurance terms and structure. Those suggestions will help to solve the problems or avoid the difficulties encountered by those who took the lead. The suggestions also will help the research and development personnel to develop a brand-new logistics liability product which will comply with the interests of insurance company, better meet the customer demand and marketing requirements, and to most extent satisfy the demands of logistics enterprises, thus resulting the win-win of the logistics industry and insurance industry.All these analysis and study on logistics liability insurance will have some immature aspects, but more significantly, these exploring and experiences will provide an important reference to further improving the insurance covering range of the logistics liability insurance in our country.