Freight Insurance Research Articles

Analysis of Optimal Variables of Return Freight Insurance Decision for Each Part of Supply Chain Based On Stackelberg Game

Based on the theory of demand and profit function, this paper studies the effects of different return freight insurance policies on manufacturers (sellers), platform optimal price, and optimal wholesale price under the distribution model. By constructing a mathematical model under Steinkelberg game, this paper analyzes the model without freight insurance and the model with freight insurance borne by different parts of the supply chain to explore the changes of the optimal variables of each party. The results show that: with the increase of the residual value of returned goods, the optimal retail price and the optimal return volume will increase, while the optimal wholesale price and the optimal demand will decrease. Under the model of freight insurance shared by the platform and the manufacturer, with the increase of freight insurance shared by the manufacturer and the platform, the optimal selling price increases, the optimal demand and the optimal return volume decrease, and when the cost of freight insurance borne by the manufacturer exceeds half, the wholesale price increases. Under the model of buyer bearing freight insurance, when consumers have high price sensitivity, the higher the cost of consumer bearing freight insurance, the lower the maximum selling price.

Return Freight Insurance Strategy and Price Decisions for a Dual-Channel Supply Chain in the Presence of Showrooming

Return Freight Insurance Strategy and Price Decisions for a Dual-Channel Supply Chain in the Presence of Showrooming

Freight insurance pricing strategy based on an online freight platform

PurposeThe development of digital technology has provided technical support to various industries. Specifically, Internet-based freight platforms can ensure the high-quality development of the logistics industry. Online freight platforms can use cargo transportation insurance to improve their service capabilities, promote their differentiated development, create products with platform characteristics and increase their core competitiveness.Design/methodology/approachThis study uses a generalised linear model to fit the claim probability and claim intensity data and analyses freight insurance pricing based on the freight insurance claim data of a freight platform in China.FindingsConsidering traditional pricing risk factors, this study adds two risk factors to fit the claim probability data, that is, the purchase behaviour of freight insurance customers and road density. The two variables can significantly influence the claim probability, and the model fitting outcomes obtained with the logit connection function are excellent. In addition, this study examines the model results under various distribution types for the fitting of the claim intensity data. The fitting outcomes under a gamma distribution are superior to those under the other distribution types, as measured by the Akaike information criterion.Originality/valueWith actual data from an online freight platform in China, this study empirically proves that a generalised linear model is superior to traditional pricing methods for freight insurance. This study constructs a generalised linear pricing model considering the unique features of the freight industry and determines that the transportation distance, cargo weight and road density have a significant influence on the claim probability and claim intensity.

Collection responsibility and freight insurance strategies for an e‐tailing supply chain in the presence of managerial optimism

AbstractEntrepreneurs are usually optimistic when they offer return policies. We investigate the strategic interaction between the manufacturer's collection responsibility strategy (returns handled by the manufacturer or the e‐tailer) and the e‐tailer's complimentary return‐freight insurance strategy (whether to offer this insurance or not) in the presence of managerial optimism. It is found that the manufacturer's collection responsibility strategy creates the (implicit) incentive for the e‐tailer to offer complimentary return‐freight insurance. A high level of optimism and return handling costs expand the equilibrium range over which the manufacturer collects returns, and the e‐tailer offers complimentary return‐freight insurance. Contrary to conventional wisdom, we find that unilateral optimism does not always lead to a win‐win situation, but it can still result in suboptimal results on the other side. Finally, despite possibly high shipping costs, the e‐tailer's refusal to offer complimentary return‐freight insurance still benefits consumers, implying that managers with high optimism level benefit consumers.

Return Strategy of E-Commerce Platform Based on Green and Sustainable Development

The secondary packaging and secondary transportation caused by products’ online return lead to a large amount of resource waste and environmental damage, which are not conducive to the green and sustainable development of enterprises. As consumers become more aware of environmental protection, their purchase and return behaviors will also change, prompting e-commerce platforms to adjust their return strategies. In this context, this paper aims to study the optimal return strategy that balances enterprises’ social benefits and environmental impact. The Stackelberg game models are constructed based on two behaviors: environmental protection publicity of e-commerce platforms and consumer return. The impacts of return strategies on the environment and the benefits of supply chain members are investigated. Results show that environmental protection publicity and return compensation can stimulate the expected sales volume. The optimal environmental protection publicity depends on the return rate. When the return rate is high, and the repurchase price is low, the optimal decision of the e-commerce platform is not to introduce return freight insurance so as to maintain its own benefits and reduce the environmental impact.

Return freight insurance strategies for the online retailer and insurance company

In online purchases, customers often exhibit considerable hesitations due to quality uncertainty and return freight fees. In response, online retailers may buy the return freight insurance (RFI) service from insurance companies that compensate the customers when they return the purchased item. With the RFI service, insurance companies generally verify the quality information posted by the retailer to avoid excessive customer returns. Thus, the RFI service not only reduces the customer’s return freight but also acts as an imperfect quality signal for customers to mitigate quality uncertainty. We characterize the RFI’s imperfect signaling effect by signal efficiency, and develop a game-theoretic model to investigate the RFI strategies of insurance companies and the retailer. Our results shed light on how signal efficiency and return freight fees drive their RFI strategies. The insurance companies charge an extremely small RFI premium for the retailer selling high-quality products; for the retailer selling low-quality products, the RFI premium becomes large for those with a medium return freight fee, or with a small signal efficiency. The retailer selling high-quality products always adopts the RFI service. The retailer selling low-quality products does not adopt the RFI service when the return freight fee is large. Given a medium return freight fee, the retailer with low-quality products prefers the RFI service when the signal efficiency is medium. Given a small return freight fee, only when the signal efficiency is large does the retailer with low-quality products adopt the RFI service. Our results provide new explanations for the prevalence of the RFI service for retailers selling products of different quality, and shed light on the RFI premium strategy for insurance companies.

Pricing and Return Strategy Selection of Online Retailers Considering Consumer Purchasing Behavior

This article mainly considers the coexistence of physical sales channels and online sales channels. Online retailers with online sales channels consider whether to provide return policies and whether to provide consumers with return insurance. The research established four return strategy models that: do not provide returns; provide returns but do not provide return insurance; provide return insurance, but the cost is borne by online retailers; and provide return insurance, but the cost is borne by consumers. The authors then studied the online retailers’ optimal return and shipping insurance selection strategies. The results show that when the proportion of residual return value after the value reduction of unit returned products was large, online retailers set higher sales prices and provided return policies, while offline retailers needed to reduce sales prices in order to attract more consumers. When the consumer unit product return compensation was relatively large, online retailers chose to provide consumers with free return insurance; otherwise, it was more beneficial for online retailers not to provide return insurance. Further research found that although the cost of online retailers increased when freight insurance was taken, it could better attract consumers, which was more beneficial to online retailers.

Will providing return-freight-insurances do more good than harm to dual-channel e-commerce retailers?

Today, e-commerce retailers commonly operate in a dual-channel mode. Return freight insurance (RFI) is an emerging measure to resolve online shopping disputes with product returns. If a consumer returns an insured product, the insurance company will compensate the consumer for the return-freight fee. In practice, we observe that some dual-channel e-commerce retailers offer RFI to consumers, while others do not. We build consumer-utility-based analytical models to study the retailer's optimal pricing decisions and values of RFI. In the basic models, the proportions of store-type consumers and online-type consumers are exogenously given; we examine three cases, namely Case N (RFIs are not provided), Case R (retailer purchases RFI for consumers), and Case C (consumers pay for RFI). Comparing these three cases, we uncover that the retailer who purchases RFI for consumers does not necessarily charge a higher price. We show that if the RFI premium is sufficiently (moderately) low, it is more beneficial for consumers (the retailer) to pay for the RFI. We analytically prove that (i) when the product's salvage value is polarized or the return freight cost is low, using RFI can help increase consumer surplus (CS), (ii) when the salvage value is sufficiently high, the social welfare (SW) with RFI is higher than the case without RFI. In the extended models, we explore the situation in which consumers can decide whether to purchase RFI as well as the channel to buy the products. In this case, we find that (i) the retailer should provide RFI only when the product's cost, salvage value, and return freight cost are all high, and (ii) offering RFI can increase CS but hurt SW. We also consider various extended models to prove the robustness of the research findings.

Optimal Return Freight Insurance Policies in a Competitive Environment

In recent years, return freight insurance (RFI) has emerged as a solution to the problem of returns of goods purchased online. However, although RFI reduces the return costs of both parties and increases the purchase intention of consumers, it also increases the rate of returns and reduces retailers’ profits. Therefore, some online retailers have looked at increasing their service effort as a means of improving the service level and reducing the rate of returns. Considering the impact of retailers’ service efforts on consumer returns, the retailers’ choice of RFI strategy is very important for its profit. It is worth studying how retailers choose RFI policies and the pricing and service effort level in different market environments. In this study, we examine the retailers’ RFI decision-making process, including the influence of retail service effort on consumer returns, by developing three duopolistic-competition game models based on three RFI markets. In this case, we analyze and compare the retailers’ optimal pricing decisions, optimal service effort decisions, and optimal profits in each RFI market, and identify the relationship between the retailers’ optimal decisions and the degree of competition. The result shows that under the market where RFI is provided by the retailer, the retailers’ optimal pricing and optimal service effort level both increase with the increase of market competition. In addition, retailers should consider the impact of market competition and return compensation on consumer demand when making the decision of whether to offer freight insurance.

Insurance On The Transportation Of Goods Through Sea Road

This study aims to examine marine transportation insurance in the process of transportation of goods transportation insurance by sea, the responsibility of the carrier in case of damage due to transportation, and obstacles in fulfilling the rights of the insured. The methodology used in this research is qualitative research with qualitative descriptive analysis. Search data in this study in the form of ScienceDirect and Google Scholar. We found that sea transportation occurred because there was an agreement from both parties, where there was a service user and the service provider of the transportation. When there is damage or loss of the goods carried, it is the responsibility of the carrier which has an impact on the agreement in the transportation between the owner of the goods and the passengers and the carrier. There are obstacles during the settlement of sea freight insurance claims, namely internal and external obstacles. There are parties involved in the process of transporting goods by seas such as the carrier, the sender, and the recipient. The stages of transportation of goods consist of preparation, loading, transportation, unloading, and completion.

Returns Freight Insurance Policy and the Impact from a BOPS Retailer

Returns Freight Insurance Policy and the Impact from a BOPS Retailer

ШАПОВАЛ Л. П., КУДЛАЙ К. Д., СОЛОМКА О. С. ФОРМУВАННЯ ТА ОПТИМІЗАЦІЯ СТРАХОВОГО ПОРТФЕЛЯ СТРАХОВИКА НА ПРИКЛАДІ ПРАТ «СГ «ТАС»

The purpose of the article is to define the essence of the concept of "insurance portfolio", to clarify the methods of balancing it, to analyze the structure of the insurance portfolio and to form a conditionally optimal insurance portfolio. Methodology of research. The goal set in the article was achieved using the following methods: assessment of risks taken for insurance, optimization of the insurance portfolio using the Markowitz mathematical model. Findings.The optimization of the insurance portfolio was carried out using the model of G. Markowitz, which made it possible to determine the conditionally optimal structure of the portfolio that would ensure the maximum profitability at a given level of risk.An important feature of this method is that in the process of its use it is impossible to simultaneously achieve minimum risk and maximum profit, this indicates the need to establish a specific value of risk at which level the optimal insurance portfolio will be formed. Therefore, based on the above, to form the optimal structure of the insurance portfolio, we take three values of risk: 5%, 6% and 7%.The study found that the most optimal for the company is a portfolio with a risk level of 5% and a return of 90.5%. At the same time, the share of such profitable types in the portfolio structure as railway insurance, freight insurance and property insurance increased, and the risk types decreased: CASCO and health insurance. It has been determined that with a decrease in the structure of the insurance portfolio of risky types of insurance, the degree of risk of the insurance portfolio decreases and, accordingly, its profitability increases. Practical value.Optimization of the insurance portfolio is an important factor in ensuring the profitability and financial stability of the insurance portfolio, which leads to the need to use this method by insurance companies. Further development in theoretical and practical aspects requires the feasibility of diversifying methods of risk management of unbalanced insurance portfolio. The development of the theory and practice of managing the balance of the insurance portfolio will be ensured in the study of this issue in various areas.

Kewenangan Mengadili atas Penerapan Choice Of Law Pada Asuransi Pengangkutan Laut

Transportation is currently developing very rapidly in the aspect of life, there are many transportations that provide cheaper prices than other transportation. To avoid the risks in sea transportation using sea freight insurance, but sea freight insurance still uses English law and its provisions. So that in the sea transportation insurance agreement the choice of law applies. The study examines the position of the choice of law in the settlement of maritime transportation disputes and explains the procedure for resolving disputes over the choice of law on the authority to adjudicate sea transportation. This study uses a normative research method with a statutory approach because there is still a conflict of norms, sourced from primary and secondary data. In the Civil Code Articles 1320 and 1338 it has been determined that the conditions for the validity of an agreement and agreements made legally will become law for those who make them. So apart from that, the choice of law in the jurisdiction to adjudicate is also contained in international civil law, thus in the settlement of maritime transportation insurance disputes that still use English law, it can be resolved by looking at the facts contained in the sea freight insurance agreement with the applicable laws. apply.

Risk management in maritime transport of goods through insurance

The present study, the issues related to the development and features of Cargo insurance are considered as a way to manage the risk in the maritime transport of goods and cargo. The state, tendencies and prospects for development of this type of insurance are outlined, as well as the gross domestic product of the country. The study period is 2010-2019, ie the years after Bulgaria’s accession to the European Union. The results of the analysis confirm the strong link between maritime transport and insurance of transported goods and cargo, which leads to strong development in the insurance market as a whole. It was established that the rate of development of the gross domestic product of the country lags behind the rate of development of the transported goods and cargo by sea. On the other hand, the pace of development of freight insurance outpaces the pace of development of goods transported by sea and the rate of development of the country’s gross domestic product.

Research on the decision-making of return freight insurance considering consumer behavior under the omni-channel model

This article considers that consumers choose offline returns under the omni-channel model to bring additional benefits to retailers, and studies the impact of different freight insurance delivery strategies on the pricing and consumer behavior of omni-channel retailers. Establish consumer utility function and corporate profit maximization model. Research has shown that consumers’ satisfaction with the three ways that companies do not provide return freight insurance for consumers’ online return, companies offer return freight insurance for consumers’ online return, and companies do not provide return freight insurance for consumers’ offline return when the price is high, free return shipping insurance can maximize the company’s online benefits, while not providing return shipping insurance services can maximize the company’s offline benefits, reducing commodity prices, and improving offline store service levels to further increase revenue; improve products Packaging quality to increase the net residual value of the product by ensuring the integrity of the product has a positive impact on increasing market share and corporate profits.

Operation strategies with respect to insurance subsidy optimization for online retailers dealing with large items

In order to promote sales, some online platforms put forward freight insurance. However, as we know, only two cases are provided by online retailers in current online platforms. One is no freight insurance subsidy, the other is full freight insurance subsidy covered all goods. As the sale of large items in online platforms is more difficult than other merchandise, we focus on the freight insurance of selling large items online in the paper. The cases of freight insurance subsidy for partial goods and partial freight insurance subsidy in supply chain are introduced. Freight insurance subsidy for partial goods and partial freight insurance subsidy both contain a case of no freight insurance subsidy and a case of full freight insurance subsidy covered all goods. To study these two new types of freight insurance, we improve a new form of newsvendor model and introduce new demand functions, based on them, we focus on researching the problems of order, insurance and marketing in upstream and downstream two-echelon supply chains. Through these studies, we can get operation strategies that include order, insurance and marketing strategies with respect to optimal insurance subsidies, so that help online retailers sell large items and make more profits. Lastly, we provide two examples to illustrate the validity of the proposed methods.

ANALYSIS OF THE INFLUENCE OF FOOD CROP PRODUCTION, DOMESTIC GROSS PRODUCTS, AND MANUFACTURER PRICES ON COST INSURANCE FREIGHT IMPORT AND FREE ON BOARD IN INDONESIA

This study aims to acknowledge and find empirical evidence of the effect of food crop production on gross domestic product and producer prices on cost insurance, freight, imports and free on board. The data analysis method used in this research is Partial Least Square (PLS) analysis. The results of this study indicate that the production of food crops has no positive effect on cost insurance and freight imports. Gross domestic product does not have a positive and significant effect on import freight insurance costs. Producer prices do not have a positive and significant effect on import freight insurance costs. Food crop production has a positive and significant effect on free on board. Gross domestic product has no and significant effect on free on board. The producer price has a positive and significant effect on free on board. Import cost insurance and freight does not have a positive and significant effect on free on board. Production of food crops is not significant to free on board through import freight insurance costs. Gross domestic product is not significant to free on board through import freight insurance costs. Producer prices are not significant to free on board through import freight cost insurance. KEY WORDS Food crop production, gross domestic product, producer prices, import cost insurance freight, free on board.

Optimal pricing and return policy and the value of freight insurance for a retailer facing heterogeneous consumers with uncertain product values

We study the optimal pricing and return policy, and the value of freight insurance for a retailer selling a product to heterogeneous consumers with uncertain values of the product. For the case with no return freight cost, we find that the optimal sale price and refund depend on the heterogeneity of consumers and the proportion of high-value consumers. When consumer heterogeneity is relatively high and the proportion of high-value consumers is very high, the retailer should not adopt the return policy; otherwise, the retailer should adopt it. For the case with a positive return freight cost, the retailer has to set a higher refund or a lower price, hurting its profit. When consumer heterogeneity is relatively high and the proportion of high-value consumers is very high, the optimal price is unchanged, but the optimal refund increases. In other situations, the retailer needs to reduce the price or increase the refund to attract consumers. Further considering the case where the retailer provides return freight insurance for the consumers, we find that whether freight insurance benefits the retailer depends on the unit insurance premium and the return freight cost.

LEGAL RESPONSIBILITIES OF PT. INSURANCE OF INDONESIAN SERVICES IN COMPLETION OF CLAIM INSURANCE OF TRANSPORTATION OF GOODS IN SEA

Transportation by sea must be based on consideration, both in economic terms and in terms of security or safety. Ships are able to transport goods in relatively large quantities compared to using transportation by land or air, especially if the goods have the property not easily damaged or rotten. The importance of protection for assets or wealth, both personal and corporate property, encourages many people or companies to look at the insurance industry as a way to anticipate losses suffered by the community and entrepreneurs. The development of existing problems and emerging now, so many insurance companies that offer a variety of different types of profit products, the benefits derived from insurance products lead to different risk coverage. The process of settling insurance claims for the transport of goods at sea by PT. Asuransi Jasa Indonesia, namely: the insured claims report, claim research, initial loss report, preliminary survey, preliminary analysis, temporary loss report, independent surveyor / loss adjuster / average adjuster, claim support documents, claim submission to headquarters, claim decision, report claim settlement, claim recovery. The form of responsibility given by PT. Asuransi Jasa Indonesia in settling insurance claims for the carriage of goods at sea is to provide compensation to the insured in accordance with the agreement that has been reached between the insured and the guarantor, namely PT. Insurance Services Indonesia. The conditions of coverage used by PT. Asuransi Jasa Indonesia for the settlement of sea freight insurance claims using Lloyd's standard conditions, the Institute Cargo Clauses. Lloyd's standard conditions, namely: Full Cover or Institute Cargo Clauses A (ICC. A 1/1/82), Restriced Full Cover or Institute Cargo Clauses B (ICC. B 1/1 82), Stranding Cover or Institute Cargo Clauses C (ICC. A ICC C 1/1/82). Generally from the three Lloyd's standard conditions above, PT. Asuransi Jasa Indonesia uses or uses the Full Coverage condition or Institute Cargo Clauses A (ICC. A 1/1/82)

What Factors Influence Online Product Sales? Online Reviews, Review System Curation, Online Promotional Marketing and Seller Guarantees Analysis

This paper proposes an SFNN (a sales factor model using a neural network), which uses a back-propagation multilayer perceptron neural network and weight matrix operation, to study the mechanism of the influencing factors of online product sales in the e-commerce platform. To achieve this objective, this study analyzes the factors and relative strength of online product sales based on four aspects: online reviews, review system curation, online promotional marketing, and seller guarantees. The empirical analysis of the SFNN model based on the data of Taobao.com shows whether the 14 factors, in relation to the four aspects, have any impact on product sales. In addition, the findings indicate that the number of sentiment words greatly affects product sales. Other factors affecting online product sales significantly include the review volume, the number of uploaded pictures, the negative review rate, the discount rate, 7+day returns and money-back guarantees, and the freight insurance. This study examines the interactions among the various factors affecting product sales on the e-commerce platform and provides management inspiration for e-commerce enterprises to manipulate online reviews, undertake effective promotion and fulfill after-sales promises.