Can insurance be a competitive advantage?

Preparedness for the unexpected distinguishes successful companies from others in the market. Taavi Lehemaa, the Member of the Management Board of LHV Kindlustus, explains how a well-thought-out insurance solution serves this purpose.

Insurance is often seen as a mandatory expense: something one must have, but whose value only becomes apparent when something goes wrong. In reality, a well-considered insurance solution can offer much more, helping a company continue operating without interruption in difficult situations and thereby creating a competitive advantage.

Insurance keeps the business moving

In the logistics sector, the advantage gained from insurance is particularly evident, as trailers, for example, are not just assets but the very core of the business. If a trailer is not or cannot be used, the work stands still, which means not only repair costs but also direct loss of revenue and a disrupted supply chain. This is often compounded by financial costs in the form of leasing or loans, which must continue to be paid even if the trailer is not rolling.

This raises an important question: should insurance focus solely on indemnifying losses or rather on ensuring business continuity?

In the cooperation between LHV Kindlustus and Cargoservice, the focus is clearly on business continuity. A motor own damage insurance for trailers has been developed, with the main advantage being that the transport company is guaranteed a suitable replacement in the event of an accident, whether it be a curtain-side, tipper or refrigerated trailer.

Thus, the insurer does not limit itself to merely compensating for damages but does everything possible to ensure the client can continue their business as painlessly as possible. The availability of a replacement trailer means that a breakdown of one’s own trailer results only in a temporary disturbance rather than a long standstill, without significantly affecting the business.

A prerequisite for such a solution is that the insurer understands the client’s business model in depth, as trailer motor own damage insurance is not a standard product but a comprehensive whole formed through cooperation. Within this framework, risk assessment, claims handling, and processes all work toward the same goal: keeping the client’s business operational.

Partnership that creates a whole

When the perspective of a credit issuer is added, the picture becomes even broader. For the bank, it is important not only that the asset is financed but also that it is well-kept, maintained, and operating as expected. A trailer is not just collateral – it is a cash-flow-generating asset. If it stands idle or breaks down, it directly affects the company’s ability to perform its obligations.

Therefore, a good insurance solution directly supports credit risk management. If the asset is protected, its maintenance and use are under control, and a backup plan (such as a replacement trailer) exists for potential failures, the business remains more stable. This, in turn, means lower risk for both the company itself and the financier.

When the bank and insurance work together, it is not a matter of two separate services but a unified, client-centric partnership. Credit risk and operational risk are interconnected, and when managed jointly, the end result is significantly stronger.

Such a comprehensive solution creates a solid foundation for company growth, resulting in fewer interruptions, better predictability, and clearer control over risks.

The future is data-driven

In the future, this picture is likely to become even more dynamic, as trailers are already equipped with sensors and telematics that allow for monitoring their use, load, location, and technical condition. This means that insurance no longer has to rely solely on past data but can move toward real-time risk management. This creates an opportunity to link insurance and financing even more closely – always in a data-driven, transparent, and proactive manner.

Ultimately, it is not just a question of insurance or banking, but of how well different services can work together to support the client’s business. When this succeeds, insurance is no longer an inevitable expense but a clear competitive advantage.