Otonomi, an insurtech startup, has expanded its parametric cargo insurance to include more transport modes. Initially focusing on aviation cargo, Otonomi has now added maritime and intermodal coverage, enhancing their ability to manage supply chain disruptions and shipping delays. This move follows a significant investment to develop their algorithmic underwriting model.
Parametric Insurance Model
Otonomi’s parametric model provides automatic payouts based on predefined conditions such as transit time discrepancies. The coverage focuses on mitigating risks from delays rather than direct damages, covering goods like perishables and high-value items in aerospace, technology, and automotive industries.
Recent Developments
In 2023, Otonomi piloted a parametric insurance product for pharmaceuticals and cold-chain assets, later expanding to include maritime transport delay coverage and aviation delay insurance. These additions are part of their broader vision to offer end-to-end coverage across multiple transport modes, driven by sophisticated data analysis and automated processes.
Future Goals
Otonomi aims to provide seamless, comprehensive coverage for complex shipping routes involving multiple transport modes. Their goal is to create an integrated insurance solution that covers every stage of the shipping process, ensuring continuous protection and efficiency for their clients.