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Democratizing Access to Enterprise-Level Risk Management
Matt Herr
6 min read
The value proposition of risk management strategies for major enterprises makes sense at large scales, but most privately-owned businesses – particularly those in the freight industry – simply cannot absorb the time or cost of the work to implement them, nor the one-size-fits all insurance policies that are traditionally offered.
As a result, SMEs are priced out of essential bottom-line protectors and exposed to unnecessary risk, which explains the disturbing statistic that more than 60% of freight is under- or uninsured.
Loadsure’s revolutionary “Holistic Freight Protection” concept democratizes pricing through data, and aims to empower supply chain businesses of all kinds to minimize their exposure to risk through actionable insights, data-powered insurance policies customized to the unique requirements of their business and finally, an automated claims process is able to settle claims in near real time; minimizing business disruption.
Holistic Freight Protection is based on three pillars: “Predict and prevent; protect; respond and recover – those are our goals,” said Johnny McCord, CEO and founder of Loadsure.
Predict and Prevent
Loadsure’s priority is to build a better, safer supply chain for everyone – not through the mechanics of a risk transfer product, but through data that can help the freight community be more prudent.
Small fleets and shippers are often moving different types of loads at different times throughout any given year based on seasonal freight markets, contracts and various locational differences.
“What makes our insurance products different is that they are priced based on highly granular data from both the supply chain and insurance community,” said McCord.
Increasingly sophisticated datasets can be used to characterize risk at unprecedented levels. “Our data is used to provide accurate pricing, but it can also be harnessed to predict and prevent losses from occurring in the first place!” said McCord.
“The best type of assured is one that demonstrates best-practice risk management,” said McCord. “We empower our customers to avoid unnecessary risk. Utilizing our data minimizes loss for not just the assured, but everyone on the road as well.”
This tech innovation should be especially transformative for SMEs without dedicated in-house risk management teams.
“Thanks to our data-driven approach to insurance, we can deliver active risk management to our clients,” said McCord. “We will deliver actionable loss control insights that should ultimately become part of a sustainable cycle of measures that businesses can utilize to optimize the risk management.”
Even those large enterprise organizations with in-house risk management, McCord says, can optimize their insurance cost and exposure to risk using Loadsure’s data.
Although unforeseen incidents will always necessitate some level of insurance for carriers, shippers and freight brokers, this emerging ecosystem will actually minimize the chances of a loss impacting an SME’s balance sheet.
Protect
With Loadsure’s growing catalog of dynamic, on-demand insurance products, SMEs can now be confident that they have access to exactly the level of protection they need, no matter how flexible or unique their risk management needs are.
“While expensive, annualized policies discourage businesses from insuring their cargo, our flagship product “Thames” is a revolutionary, all-risk cover that’s available on an affordable per-load basis – no annualized policy necessary,” said McCord.
With up to $2 million in domestic international single conveyance limits and up to $100,000 in domestic and international coverage for LTL shipments, the smallest SMEs and of course large carriers and shippers can take advantage of Loadsure’s Holistic Freight Protection at any level of capacity.
“With our hyper-accurate, data-driven algorithms, shipments that previously took hours or days to process can now be quoted instantly,” said McCord.
Respond and Recover
When the inevitable incident does occur, however, Loadsure’s automated claims process is designed to make clients whole as quickly and as frictionlessly as possible. “Being best in class in pricing is one thing, but insurance has one other moment to shine, which is claims,” McCord said.
The sophistication of automated systems empowers claimants to interact directly with technology at any time, creating a more efficient operating model that removes frustrating ambiguity and doesn’t rely on a call center.
Loadsure clients can be informed throughout the full lifecycle of their claim journey – from initial advice to real-time updates, settlement agreements and (crucially) payment. “This kind of visibility has a hugely positive effect on customer satisfaction and trust,” said McCord.
These processes also make the window between the submission of a claim and the receipt of payment much shorter.
The customer can receive instant payment once the claim is approved. “While the complexity of claims is a major factor in time to settle, we recently settled a claim in under a minute,” said McCord. “That’s a level of service that can’t currently be matched by any manual process.”
Developed Specifically for Freight
Unfortunately, many InsurTechs have developed solutions in search of a problem, according to McCord. These tech startups or even established service providers place their preexisting technology on a generic insurance facade without any distinguishing functionality built to help SMEs in the freight sector.
“We’ve taken a different approach,” McCord said. “We’re purpose-built for freight insurance, and every aspect of our functionality is specifically optimized for the pain points that both assureds and insurers face in the freight industry.”
In contrast to InsurTechs, Loadsure was built from the inside out by experienced professionals representing both insurance and freight concerns. “At our core, we’re customer-led and designed to empower the freight community with better risk management,” McCord said.
Loadsure leverages expertise from insurance, freight and technology specialists. “It’s our ties to these sectors that uniquely position us to feel empathy for all three, and pioneer a future where they intersect,” McCord said.
“It’s our data that makes us best-in-class,” McCord said, “but it’s our collaboration with partners that helped us develop the products with the terms and conditions that are right for each client.”
An Asset to the Community
Through their partnerships with individuals and companies throughout the freight industry, Loadsure’s holistic freight protection is making the supply chain safer and reducing costs for not just clients, but all organizations across the board.
Loadsure’s partnership with logistics risk management solution Overhaul, for instance, serves as an ecosystem of logistics and supply chain technologies, Insurtech innovators, device manufacturers, dynamic marketplaces, systems integrators, and logistics service providers to protect the entire freight community from cargo theft, which is one of the leading causes of preventable loss during transportation.
“We’re not doing all of this by ourselves,” McCord said. “It’s a community effort of gathering and analyzing data, and we want to give back to that entire community,” he said.
Ultimately, Loadsure is empowering SMEs and segments that have been underserved. “We’re democratizing access to services that were once only available to larger enterprises,” McCord said.
