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The Digitization of Cargo Insurance: Outlining the Benefits of AI-Powered Claims


With the advancement of technology, supply chain management has undergone a tremendous change as of late. Advanced robotics and applying big data analytics to logistics operations have significantly improved performance and customer satisfaction in the supply chain industry.

What Exactly is Supply Chain Digitization?

Supply chain digitization, or supply chain digital transformation, is the process of transforming analog supply chain processes to digital ones by developing dedicated master data that aggregates information from across an entire supply chain, including information from external sources such as:

  • Internal historical sales data
  • Point-of-sale consumer data
  • Socioeconomic data, i.e., unemployment rates
  • External data such as Google trends or competitor prices1

Digitization is made possible with out-of-the-box or custom-made software focusing on automation and business intelligence. With this transformation, companies can meet new customer requirements, improve the efficiency of the process and address previous challenges faced by the limited capacity of analog systems.

Trends Influencing Digitization

The shift to a more digitized supply chain requires companies to rethink the way they design their supply chain. McKinsey & Company, a global management consultant, outlined growing trends that have beckoned companies to shift their supply chain processes in recent years2. In addition to the emergence of new technology, these trends have altered the traditional ways of working. For example, there has been more activity in rural areas worldwide, with wealth moving into regions that have not been served before. Additionally, companies are facing pressure to reduce carbon emissions, which has resulted in new ways of handling processes in the supply chain.

A major trend influencing digitization is the changing expectations of customers. With more and more consumers doing things online, service expectations resulted in a stronger “granularization” of orders. There has been a growing trend of individualization and customization in the world of consumerism. Supply chains need to become faster, more granular and much more precise in response to these trends.

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Digitization’s Influence on Insurance Industry

The digitization of logistics presents a significant opportunity to transform business operations. It comes as no surprise that the cargo and logistics insurance industry responded to the changing expectations of consumers who now expect immediate access to information, products and real-time customer service. New technologies, innovative concepts, and specialized knowledge resulted in next-gen digital products and services being born in the cargo insurance industry.

“The supply chain has become so dramatically digitized. I felt there was a better way to distribute, underwrite and settle claims,” says Johnny McCord, CEO and Founder of Loadsure3. With nearly 19 years of experience in the cargo and logistics industry, McCord launched Loadsure in 2018. The company is a relevant response to the changing needs of the industry. Leveraging AI and automation, the Loadsure platform enables end-users and cargo owners to automate their coverage or secure on-demand insurance in seconds. It also offers simplified, automated insurance processing of cargo insurance claims.

Advantages of AI-Powered Insurance Claims

Compared to how the digitized supply chain brings more speed, flexibility, granularity, accuracy and efficiency to the process, digitized cargo insurance also has lasting benefits. As the pandemic massively disrupted the world’s supply chain, the value of automation and AI in insurance became abundantly clear to many in the industry. By eliminating some of the more labor-intensive processes of traditional insurance models, AI-powered claims offered by companies like Loadsure help:

Reduce operational costs by decreasing the number of human touchpointsDecrease the potential for human error by eliminating the guessworkAccelerate claim settlements with advanced management platformsDeliver real-time transparency of claim status with easily accessible, user-friendly systems

As the supply chain continues to advance, we can expect to see more cohesive and connected insurance solutions like Loadsure that leverage data for important decision-making.

For information on how Loadsure and NFP can simplify your cargo and logistics underwriting process, visit this page.

Sources

  1. For more information, visit ddcfpo.com.
  2. For more information, visit McKinsey.com.
  3. For more information, visit Loadsure.net.
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