Greenlight Re invests in blockchain-powered parametric cargo insurtech
Greenlight Re Innovations (GRI), the insurtech unit of Cayman-based specialist property/casualty reinsurer Greenlight Re, has invested in a blockchain-powered parametric cargo insurance platform.
The reinsurer believes its investment in New York-based insurtech Otonomi’s innovative offering will help alleviate a global problem.
Otonomi is developing parametric coverage for air, ground, and marine cargo and freight delays, which have increased significantly in the recent years with many companies experiencing supply chain disruptions, particularly since the onset of the COVID-19 pandemic.
Otonomi works with aviation, freight forwarders, and logistics partners to provide a simple, point-of-sale insurance offering on a per-shipment basis to mitigate interruptions that ultimately create delays and higher prices for consumers.
Additionally, the insurtech’s platform uses blockchain technology to administer the policies while enabling automated claims payments, reducing the claims adjudication processing time.
Simon Burton (pictured), chief executive officer at Greenlight Re, said: “Cargo delays and other supply chain issues have been key topics of discussion recently. Investing in Otonomi's flexible per-shipment digital cargo delay product was an easy decision as we believe their vision will help alleviate this global problem.”
Yann Barbarroux, co-founder and chief executive officer at Otonomi, said: “Otonomi is bringing a first-to-market parametric cargo delay coverage for the shippers, logistics, 3PLs, and freight forwarders while also creating tremendously effective operating models for its insurance underwriter partners.
“We've found in Greenlight Re Innovations a fantastic partner on both the insurance and the capital management sides. We're incredibly grateful for their support as part of our seed financing."
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