Insurtech to reduce risk, the cost of cargo insurance

In the auto insurance industry, technology is advancing in providing coverage and reducing risk.

Insurers can be very precise about the levels and value of coverage. Detecting and preventing theft, damage and accidents is becoming increasingly common through new and improved technology.

Large carriers such as Nationwide and new startups such as MiKargo247 are both developing service delivery solutions.

Around the world they often ship large fleets of 500 or more vehicles, according to Carole McIntyre, director of underwriting, working with a growing and growing group of commercial underwriters. McIntyre works with drivers who have one or less than 10 vehicles.

Carole McIntyre, senior director of underwriting at Nationwide

“Being able to customize more and more is a huge benefit for small business owners,” says McIntyre. “They can suddenly have one load that is a little different from what they do most days. So we can provide travel cover to increase the limit or we can specify the type of load. Even if they don’t know all year, what they will carry, we can work with them work throughout the year to get the support they need.”

A new insurtech, MiKargo247, is also negotiating a bulk insurance policy with one-way cargo insurance underwritten by Roanoke Insurance Group, a division of Munich Re. The coverage is limited to motorists who need higher limits on cargo, as well as freight forwarders who arrange shipments where shippers need to be paid, according to Dave Pasco, vice president of sales and development at Roanoke Insurance Group.

Michele McGinnis, co-founder and CEO of MiKargo247

The most common auto insurance coverage is $100,000, says Michele McGinnis, co-founder and CEO of MiKargo247. “If drivers want to carry a very valuable item, or something that may not be there, they are sent to the market, looking for more insurance,” he says. The situation has worsened due to recent inflation, he says.

“Drivers who didn’t need additional services or higher prices six months ago may need them today. And they’re not used to going to look for that. Because the goods they carry now are more important and more expensive. than when this market went up a lot,” says McGinnis.

John Pope, chairman of Cargo Transporters

John Pope, chairman of Cargo Transporters

Even large carriers can insure themselves against market fluctuations like inflation, though they limit themselves, as John Pope, chairman of Cargo Transporters, a Claremont, North Carolina-based company that operates about 500 trucks and 1,800 trailers, explains. “We have carriers so that goes beyond our insurance coverage,” he says.

In addition to using new technologies and services to find the right place to transport goods, trucking companies are using various sensors to protect goods, to monitor goods and to monitor the status of shipments.

Cargo Transporters use it telematics following his trailers. “We can tell if the trailer is moving outside because it’s connected,” Pope says. His company is moving forward to introduce the most advanced cameras inside the trailer. “We get pictures of the inside of the trailer that confirm both whether the trailer is really full or empty. It gives us a picture of the cargo that is loaded there. It’s not a live show, but we can know the condition of the truck. The cargo. We can know how it was transported by the shipper and if it was properly protected. We use use the integrated tools to monitor the location of the cart and the status of the cargo.”

Assistcargo, a Miami-based freight forwarding and security company with operations in the US, Mexico and six South American countries, recently partnered with Tive, a virtual technology company. Together, they are providing trucking companies’ customers with monitoring equipment that provides information in real time, including light indicators that show when a trailer door has been opened, according to Jose Luis Anselmi, founder of Assistcargo. Assistcargo operates its monitoring center using Tive technology.

“We send drivers a link and we can monitor the driver’s phone if we want to,” he says. “We create a link between the built-in GPS in the car and the driver’s phone and Tive device.”

Using GPS data combined with internal monitoring equipment, Assistcargo and Tive can track the driver’s speed for safety, as well as what might happen to the load on the road, as Anselmi explains.

“We did a very interesting experiment with the biggest company in Mexico that sells air conditioning equipment. They had a high rate of equipment failure. They didn’t know why or when this happened. Using the equipment that was in the cargo, we did something. They saw that the problem was the main one was on the way,” he says. “The answer is that if the driver stops suddenly, with G-force, the pieces of the cargo press against each other. By using control to control the behavior of the driver, we can reduce the damage.”

In general, a speed of 50 miles per hour can be considered safe for a certain vehicle and a trailer with some cargo, but if the weather is bad, the speed should be lower, monitoring that can record or help, Anselmi explains. .

One wrinkle to using GPS tracking in this way, however, depends on how much mobile technology supports GPS functions, as Nationwide’s McIntyre points out. Tracking may fail if the GPS technology installed in the vehicle is still 3G, but all networks in the vehicle’s path have now been upgraded to 5G.

“Large units or large insurers, with more than 1,000 [vehicles] they are replacing [the 3G] technology,” he says. “Because our insurers are a little bit smaller, the owners, it’s taking time to do that. So we’re having a little trouble tracking some of the trailers at the moment, but hopefully all of that technology will be improved soon. “