Approved Lloyd’s coverholder and supply chain data platform, Parsyl, Inc., has announced that Parsyl Insurance has launched a suite of connected cargo insurance solutions for perishable goods, called ColdCover.
The new suite of solutions will be powered by the firm’s IoT data platform and includes an innovative, industry-first parametric spoilage product, which protects against losses due to temperature fluctuation.
Parsyl, described as the only integrated supply chain visibility and cargo insurance solution, has developed a data-driven offering that is designed to be simple, transparent and fast, providing shippers of perishable goods with the coverage, predictability and protection required for their largest exposures.
The company notes that all ColdCover policies include access to Parsyl’s quality monitoring and risk management platform, which leverages smart sensors and data analytics to automatically produce interactive shipment visualisations, performance insights, and recommendations for avoiding issues in the future.
Ultimately, says the company, the insights offered help shippers of goods to improve supply chain performance, while at the same time lower both the risk and insurance costs.
In addition to the launch of the cargo market’s first parametric solution, the company has also completed a $15 million Series A funding round, led by GLP and Ascot Group.
Andrew Brooks, the Chief Executive Officer (CEO) of Ascot, commented: “This is an outstanding example of how insurtechs and insurers can partner to bring innovation to the cargo insurance market at a time when supply chain interruptions demand new thinking and new products from Lloyd’s.
“The power of Parsyl’s data is what enables them to respond quickly to customer needs, eliminate or reduce adjustment costs, and drive down expense ratios – something that benefits clients and insurers alike. We’re thrilled to be backing this truly unique offering.”
The featured product within the company’s new suite is called ColdCover Parametric, which includes customisable quality triggers and payout levels. The coverage is based on product-specific degradation algorithms, enabling Parsyl to understand if, and when and where products have experienced spoilage during shipment or storage.
The data is automatically analysed and customers are then informed of temperature breaches. If an issue occurs, Parsyl says that payment is made within 72 hours.
Rapid payout is a key benefit of insurance solutions structured around a parametric trigger. Parametric policies are structured to trigger when predetermined thresholds have been met, such as an amount of rainfall or the fluctuation in temperature. This means that the need for on-site loss assessment is removed, enabling funds to be disbursed rapidly to those that need it most, which aids the recovery process.
Discussing the new suite of solutions, Oliver Luckett, Chairman of Niceland Seafood, said: “Niceland has always prioritized food quality and safety above all else. When businesses like ours lose product due to supply chain issues like temperature fluctuation, we can be left in the dark while claims are investigated.
“By combining temperature monitoring with cargo insurance Parsyl hits two pain points at once – collecting objective data and using it to hold actors in the supply chain accountable.”
Parsyl states that its ColdCover suite of products include everything that is required to insure perishable cargo, and also features a staggered payment option to lower the initial costs of purchasing cargo insurance protection.
An announcement on the launch reveals that the ColdCover suite of solutions includes: ColdCover Parametric – single peril transit cover for spoilage due to temperature; ColdCover Buyback – deductible payback for all risk transit and STP policies; ColdCover Transit – all perils cargo policy for theft, loss or damage to products in transit; and ColdCover Stock + Transit – all perils cover for theft, loss or damage to products in transit and/or stored in inventory.
Gordon Longley, Partner and Head of Marine at McGill and Partners, and partner and trusted advisor to Parsyl, said: “The way Parsyl is using its data to deliver new products and value for hard to insure perishable risks is exactly the type of innovation the cargo insurance industry needs. We are thrilled to partner with a company so advanced in their thinking and technology, meaning we are now able to deliver unique solutions for both clients and markets.”
Parsyl is an approved Lloyd’s of London coverholder and is licensed to offer cargo insurance solutions in Alaska, California, Colorado, Louisiana, Maine, Massachusetts, Oregon, Texas, Virginia, Washington, and the United Kingdom.
The company says that it intends to use the $15 million raised to launch its insurance suite in more states in the U.S. in the coming months, advance industry specific product degradation algorithms, and grow its team.