06.01.18
Corvus Team

Using Cargo Temperature Data To Prevent Future Spoilage

How Does Corvus Smart Cargo Insurance™ Help Reduce Future Spoilage?

Smart Cargo Insurance™ from Corvus uses temperature stability data, collected for decades for shipments of food and pharmaceutical products, to predict and prevent the major cause of Cargo Insurance losses for these companies - spoilage. We do that by comparing the temperature stability of an insured’s shipments against that of hundreds of thousands of shipment data points. We produce a relative risk score that we share with brokers and clients. Corvus delivers this information on its CrowBar data platform.

Policyholder Information - Frequently Asked Questions:

What Determines the Cost of My Caro Insurance Plan?

For insureds that have the best scores, i.e. the highest temperature stability, we offer lower prices and broader coverage on an otherwise standard, broad global Cargo Insurance policy underwritten by Argo Insurance Group (Best’s rated A, XIII). But the Corvus experience does not end there.

What Services Does Corvus Offer to Help Protect Cargo Shipments?

During the policy period, we monitor new information from ongoing shipments. If we spot negative trends, we inform brokers and policyholders with actionable recommendations generated by the CrowBar. We call this ongoing digital inspection service Dynamic Loss Prevention™. It is unprecedented in the insurance industry. In fact, Smart Cargo Insurance is the first IoT (Internet of Things) based Commercial Insurance policy ever!

Why Is It Called Smart Cargo Insurance?

We also analyze the temperature stability data to determine other patterns that might be predictive of claims. For example, we break down the temperature stability readings based on shipment source and destinations. In that way, we are able to help an insured see “near misses” of spoilage in order to use that information to improve its internal processes. This form of Business Intelligence is all driven by our software tools.

Risk scores. Dynamic Loss Prevention™. And Business Intelligence. That’s why we call it Smart Cargo Insurance.

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Marine Cargo insurance is vaunted as the foundation of modern insurance, with its lineage dating to the insuring of ocean-crossing vessels, and their cargoes, in the fifteenth century. With all that history, change tends to come gradually to the line. (And with generally stable profitability, carriers could be forgiven for not rocking the boat.) More recently, technologies such as connected temperature sensors and GPS trackers have entered the picture for shippers. But the data they generate hasn’t been factored into insurance underwriting at scale. Today, we’re sharing an exciting update that will help to finally bridge Cargo Insurance into the 21st century.