Founded in 2018 and having completed Series A funding in March 2022, Loadsure provides insurance to freight cargo in transit. InsTech’s Tara Allsopp interviewed Loadsure’s Founder and CEO, Johnny McCord to discuss the underinsurance of global freight, Loadsure’s pay-as-you-go and annual coverage and the benefits of embedded distribution.
What was your motivation for founding Loadsure?
Over 60% of cargo in transit is reported to be underinsured (a figure which Loadsure estimates to be closer to 80-90%). The 300-year-old freight insurance industry has been slow to embrace new technologies and ways of working. I was a cargo wholesale broker in the London market for over 20 years before becoming CEO and Founder of Loadsure. I set up Loadsure because I wanted to modernise freight insurance; introducing cost-effective insurance for the entire freight industry.
How is Loadsure aiming to reduce underinsurance in the freight in transit industry?
At Loadsure we aim to reduce the percentage of underinsured cargo. This is done by putting technology-enabled efficiencies in the hand of every partner who uses Loadsure’s digital purchasing system. Technologies that Loadsure is using to create these efficiencies include automated quoting. Historically, SMEs could only purchase annual products designed for large enterprises. The risky alternative is to rely on their carriers’ liability policy which has many exclusions limiting payout in the event of a claim. Underinsurance occurs due to the limitations of the options available to SMEs. Through Loadsure’s “pay-as-you-go” products, the freight community and the brokers that serve them can purchase the coverage required, when it is needed.
Where are you sourcing your data from to create Loadsure’s underwriting models?
Loadsure’s underwriting process is fully automated and combines new sources of freight industry data, and real-time data. This enables us to create a clear risk profile for each cargo shipment. Loadsure also passes these risk insights onto the client in the form of alerts and guidance reports to enable them to make better supply chain risk management decisions.
What technologies are Loadsure currently using?
Loadsure uses a rating algorithm for its pay-as-you-go freight insurance product which is being fed data from the company’s underwriting models. This algorithm produces instant rating indications, allowing the end customer to purchase coverage in 40 seconds or less - and process claims in near-real time. Loadsure’s APIs can be embedded into the end customers workflows via their trusted intermediary’s own Loadsure environment The entire solution is hosted on Google cloud-based technology
What is Loadsure’s distribution route, and why did you choose this?
Loadsure is distributing its products through embedded distribution, via API integration to insurance brokers digital sales channels as a white-labelled portal or directly into end-customers’ transportation management systems systems. This enables brokers, who may otherwise rely on face-to-face placement to access the Loadsure underwriting tool and distribute more efficiently. The aim is to support more partners within the commercial freight industry, both the intermediaries and the shippers with automated services including reporting and claims processes. Embedded distribution also leads to lower premiums and reduced underwriting costs. The embedded insurance route also creates additional brand awareness and customer retention.
Can you tell us about the launch of the ‘smart annual cargo insurance’?
There is a demand in the freight community for more cost-effective, annual insurance. Loadsure is using the data it has gathered to date to provide an accurately priced annual freight transit product for first and third parties customers. Along with fully automated reporting and policy issuance.
Where are the biggest areas of opportunity for Loadsure?
Loadsure is building a full suite of products to serve the needs of the freight industry. The company aims to distribute these products internationally. Loadsure is expanding into the inland marine market as well.
What emerging technologies are you interested in using in the future?
Loadsure continually develops machine learning capabilities to ensure its rating algorithms and underwriting models’ success. The company is also taking a selective approach to other technologies; working with vendors who provide complementary products and services to Loadsure’s established algorithm and models.
Why did you join InsTech, and what types of companies are you interested in connecting with?
As Loadsure builds its own technology, we are looking at companies to partner with or purchase technology from. InsTech has helped us to identify like-minded, innovation-focused technology companies. As an MGA, the company is also looking for potential capacity providers.
To find out more about Loadsure’s smart, embedded freight insurance solutions, or to arrange a demo, please reach out to Johnny McCord (firstname.lastname@example.org) or visit Loadsure.net