14 Dec Insurtech in Logistics: The Next Wave
Insurtech is where insurance meets the technology revolution of today. It uses data analytics to improve risk management and therefore offer better and more customer-specific insurance. Where data availability is increasing for equipment, inventory and real estate, it is possible for the logistics industry to benefit. If technology can be introduced to these areas of the supply chain, risk management and insurance products are improved.
The state of the industry
Insurtech can benefit the logistics industry by using data analytics to better understand risk and insure against it. Route optimization and dynamic route planning takes is already common practice. However, insurtech is important because it uses data analytics to gather unstructured data such as traffic, road conditions, weather, etc, into a prediction of risk. Also, insurtech takes risk assessment to a broader landscape, considering, for example, international trade policy or political climates.
Growth in IoT technology has made more data available regarding logistics equipment and inventory. IoT data helps algorithms make decisions about risk. As AI and ML continue to develop, there is room for further automation and digitization of insurtech regarding assets in logistics.
For example, Amsterdam-based 30 mHz uses real-time sensory data on location and assets to mitigate risk. Also, US-based Teradata uses data analytics for asset optimization and risk mitigation.
The Global and Dutch Insurtech landscape
Many of the important players in data driven Insurtech are global. Some Dutch companies which act on a global scale for risk mitigation by data analytics are Skylab Analytics, Ordina, MPO, 30 mHz and Owlin. Global operations shows that insurtech is not focused on national boundaries. Much like the larger logistics industry itself, it must cross borders.
The US is also home to key players, such as Teradata and Qbiz. Globally for insurtech, the US has lead innovation with the UK and Germany also being significant players.
Predictions for the industry
As more data becomes available concerning assets, locations and outside risks, insurtech will grow. The logistics industry has much to gain from better understandings of risk. It is therefore important to keep an eye on developments in Insurtech.
Logistics and FinTech Event
On December 14, HollandFinTech & Dinalog are hosting an session together at Turner in Leusden to work on using data in logistics. Together with a broad spectrum of industry players (insurers, tech companies, logistics, banks, researchers) we’ll work on managing theft, damage and driving related risks.