Insurance of Things
All logistic activities have an associated risk. Harmful events can occur at any time and have a high negative impact on both the transport operations and the business KPIs. However harmful events are hard to predict. The best approach is to protect businesses with insurance.
Monitoring cargo (locating cargo and getting the surrounding conditions such as temperature) has the potential to revolutionize the insurance industry by enabling new products, services, and pricing models based on real-time data.
Some of the emergent use cases and opportunities are:
Usage-Based Insurance (UBI):
Stole and Lost cargo: routing, planned stops; all the vehicle journey patterns can help detect unpredicted routes. Premiums should be based on driving data, for example, identify unplanned stops (where thefts can occur).
Specialized Insurance Products:
High end retail delivery: last-mile delivery of expensive items such as fashion sneakers and jackets or electronics should be protected with new specialized insurances.
High-end cold-chain: like high-end retail cold-chain for high-end products need special attention. We are talking about caviar, wagyu and angus beef, bluefin tuna, etc. Not only we need to track and prevent thefts but also care about the integrety (avoid damaging by mis-handling, being exposed to high-temperatures)
Risk Assessment and Prevention:
Claims Processing: having data about the location and conditions of transportation will accelerate claims processing by providing accurate data on the circumstances of an incident, leading to faster and more efficient resolution.
Personalized Pricing Models:
Dynamic Pricing: having access of past incidents and behaviour could help customers and insurance companies negotiate new premiums based on the real-time data.