The new product aims to address the critical issue of short delays in air cargo transportation, offering a range of coverage options to suit different needs and the solution is designed to improve risk management and provide financial protection for time-sensitive shipments.
Otonomi’s data shows that an estimated 62% of cargo flights are delayed on an annual basis and the launch of the parametric solution follows on from the news in February, that Otonomi is also working with BlueBox Systems – one of the leading developers of intelligent air freight tracking solutions.
“We’ve listened to our customers across various industries and regions. This first-ever 3-hour delay parametric insurance is our answer to their call for more precise, responsive risk management tools in air cargo transportation,” Yann Barbarroux, CEO & Co-Founder, Otonomi said.
Identifying Market Needs
Otonomi has also reported a demand for more precise risk management tools. Customers in the United States, Latin America, and Asia-Pacific highlighted the necessity for insurance solutions addressing ultra-short delays.
Several key factors are driving the launch of Otonomi’s parametric insurance. Market demand has highlighted the need for specific risk management tools across various regions. Industry-specific requirements are also significant, particularly in the medical and life sciences sectors, where delays can result in substantial losses for medical specimens, clinical trial materials, and pharmaceuticals. The perishables sector, including products like salmon, produce, and fruits, requires timely delivery to maintain quality.
Just-in-time manufacturing in the critical-auto industry also relies on precise delivery schedules. Additionally, global supply chain pressures and macro risks, such as geopolitical challenges and climate risks, have increased the need for reliable air cargo transportation. Technological advancements have enabled the development of rapid, automated solutions for managing short-term delays, further supporting the need for this new insurance product.
Benefits of Parametric Freight Insurance
The 3-hour delay insurance provides tailored protection for time-sensitive shipments across various industries and regions. The key benefits include:
- Risk Mitigation: Provides protection against the financial impact of delays.
- Cash Flow Management: Facilitates rapid claim settlements.
- Customer Satisfaction: Ensures reliable delivery timelines.
- Competitive Advantage: Offers advanced risk management in the global market.
Coverage Options
Otonomi offers flexible coverage options to meet different needs:
- 3-hour Premium Offering: For extremely urgent shipments.
- 6-hour Advanced Protection: Mid-tier pricing for enhanced risk protection.
- 12-hour Standard Coverage: Competitive pricing for standard risk coverage.
Source: Otonomi
