Bridging Supply Chain Gaps with Cargo Delay Insurance

In the latest episode of the InsurTech Geek Podcast, hosts James Benham and Rob Galbraith delve into the world of cargo delay insurance with special guest Yann Barbarroux. As supply chains grow increasingly complex and global trade faces numerous disruptions, innovative insurance solutions are essential for mitigating risks and ensuring smooth operations.

Yann Barbarroux, a pioneer in parametric insurance, sheds light on how his company is addressing the long-standing exclusion of delay coverage in traditional marine and cargo policies. Through parametric insurance, claims are triggered automatically based on predefined parameters, such as transit times, without the need for a lengthy adjudication process. This approach not only ensures quick payouts but also brings much-needed predictability to the industry.

Innovative Insurance Solutions

Simplifying Claims Processing: Parametric insurance eliminates the traditional claims process, providing swift payouts within 48 hours of a triggering event. The use of real-time data and automated systems ensures transparency and efficiency.

Addressing Exclusions in Traditional Policies: Historical exclusions in marine and cargo insurance policies have left gaps in coverage, particularly for delays. Yann’s company is bridging this gap by offering a product specifically designed to cover delays, providing a new layer of protection for shippers and freight forwarders.

Leveraging Technology for Real-Time Tracking: Advances in GPS, satellite technology, and IoT sensors enable real-time tracking of cargo, crucial for triggering parametric insurance claims. These technologies also help in dynamic pricing and risk assessment, enhancing the overall efficiency of the insurance process.

Global Impact and Adoption: The demand for cargo delay insurance is growing, driven by the increasing complexity of global supply chains and the rise in geopolitical and climate-related disruptions. Yann highlights the importance of educating the market and establishing strong partnerships with data vendors and logistics providers to ensure the success of this innovative product.

The Potential of Cargo Delay Insurance

The introduction of cargo delay insurance marks a significant advancement in the insurance industry, addressing a critical need for more predictable and efficient risk management solutions. As technology continues to evolve, the potential for further innovation in this space is immense.

Tune in to the full episode to learn more about how Yann Barbarroux and his team are revolutionizing the insurance landscape with parametric solutions.