Parsyl debuts spoilage policy with goal of insuring seafood providers from losses due to temperature
A new integrated supply chain visibility and cargo insurance solution optimized for shippers of perishable goods, including seafood, is offering the industry its first parametric spoilage policy, which protects against losses due to temperature.
ColdCover by Parsyl Insurance is a new suite of connected cargo insurance products for perishable goods launched by supply chain data platform Parsyl on 15 April. The data-driven insurance offerings are “simple, transparent, and fast,” Parsyl said in a press release, and include the only parametric spoilage policy available in the cargo market.
Powered by Parsyl’s IoT data platform, the ColdCover insurance products all come with access to Parsyl’s quality monitoring and risk management interface, “which combines smart sensors and data analytics to automatically generate interactive shipment visualizations, aggregated performance insights, and recommendations for avoiding issues with future shipments,” the company noted.
The products in the ColdCover suite include ColdCover Parametric, which offers single peril transit cover for spoilage due to temperature; ColdCover Buyback, which involves deductible buyback for all risk transit and STP policies; ColdCover Transit, an all perils cargo policy for theft, loss, or damage to products in transit; and ColdCover Stock + Transit, an all perils cover for theft, loss, or damage to products in transit and/or stored in inventory.
The featured product within the suite, ColdCover Parametric, is equipped with customizable quality triggers and payout levels, with coverage based on product-specific degradation algorithms, which help Parsyl to determine if, when, and where products have experienced spoilage during their shipment and storage cycles. The firm automatically analyzes data and informs customers, including Icelandic supplier Niceland Seafood, of any potential temperature breaches.
“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,” Niceland Seafood Chairman Oliver Luckett said.
If a breach or issue occurs for a ColdCover Parametric client, payment is made in 72 hours, “giving shippers the cash they need to bounce back from a loss,” Parsyl explained.
The whole ColdCover suite touches upon all areas needed to insure perishable cargo, Parsyl said, including pharmaceuticals and life science products, seafood, fruits, vegetables, and agricultural commodities. A staggered payment option that works to ease the upfront costs of buying cargo insurance is also provided by the product range, according to Parsyl, which is an approved coverholder with Lloyd’s of London and has its policies backed by the Bermuda-based Ascot Group.
“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,” Ascot Group CEO Andrew Brooks said. “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.”
Parsyl – which is licensed to offer cargo insurance products in Alaska, California, Colorado, Louisiana, Maine, Massachusetts, Oregon, Texas, Virginia, Washington, and the United Kingdom – recently raised USD 15 million (EUR 13.8 million) in Series A funding. The funding endeavor was led by GLP, an investor in logistics and related technologies, and commercial insurer Ascot Group. The company said it will use the funding “to launch its insurance product suite in additional states in the coming months, advance industry specific product degradation algorithms, and expand its team.”
Photo courtesy of Parsyl