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MARINE | Cargo digitalisation In association with Marsh Specialty
The digital transformation in the logistics and marine insurance sectors is leading to new opportunities to collaborate more effectively and deliver innovative products and solutions argue Matthew Yeshin (above) and Herman Brito, Marsh Specialty Managing Directors in the group’s Marine, Logistics and Transportation Practice in North America
Full speed ahead for cargo insurance digital transformation Digitalisation in logistics has accelerated because of the pandemic-fueled boom in e-commerce and customer expectations for fast delivery, as well as aggressive competition driven by advances in technology. Similar trends are accelerating digitalisation in insurance, creating a convergence for both industries that has led to innovation in cargo insurance and claims to meet the expectations of the logistics industry and its customers. Developments that are driving change in logistics and insurance include: > Sharp reduction in the cost of technology, expanding access to digital tools that improve efficiency, mitigate risk, and enhance the customer experience; > Evolving consumer expectations for delivery of goods and products, as well as heightened demand for information and service in real time; and, > Increasing competition from technology-enabled startups. During the fourth quarter of 2021, for example, more than 250 supply chain startups attracted nearly US$11bn in venture capital in the US and Europe, according to PitchBook. That represented a year-over-year increase of almost 8%. The Marine Insurer | June 2022
CONSUMER EXPECTATIONS CHANGING
Ongoing supply chain disruptions have increased the impact of delivery delays across the global manufacturing and retail industries. At the same time, consumers are becoming increasingly willing to seek alternate suppliers that can deliver goods and products faster. Buyers simply are no longer willing to wait a few more weeks to receive deliveries, particularly if they can find another supplier. Consumers’ and corporate shippers’ expectations changed radically during the Covid-19 pandemic that began in 2019. Since that time, advancements in technology have accelerated e-commerce trends and growth in business-to-business (B2B) and business-to-consumer (B2C) commerce. Even though B2B has long been the core focus of the logistics industry, global supply chain revenue growth is seeing opportunities in B2C. As a result, new digital providers with B2C experience are entering the logistics and supply chain industry. These entrants are placing pressure on traditional players to create new business models and provide innovative products that meet the rising expectations of consumers.
