VeChain and YunKeAn (LogSafer) a leading supply chain risk management platform enter into partnership to develop blockchain solutions for logistic insurance industry, a ~ $50billion global market
On March 13, 2018, VeChain entered into a partnership with LogSafer, a leading supply chain risk management and a major logistics insurance platform in China with over 2,500 corporate clients. In the agreement, the two parties will work together to integrate big data and Internet of Things technology into existing and future solutions. The combination of VeChain’s proprietary IoT sensors and the VeChainThor blockchain applied intelligently to the supply chain risk management industry will assist in revolutionizing insurance and value protection services for shipping, logistics and trading companies of every size. The logistic insurance market is estimated by Grand View Research to be approximately $50 billion globally.
Cross border logistic management is a complex business model, there are many layers to different businesses that get involved when a product is shipped from point A to B, these layers become exponential in difficulty when the products have to cross borders.
Cross border logistic management companies have to think of how to manage the magnitude of business links, how products survive and their services perform across terrain and long duration, as well as meeting the needs of all companies depending on the services success among many other criteria and bottlenecks. Many of these variables lead to risks within the insurance underwritings. How to foresee these risks, and how to value these risks, are the capabilities of YunKeAn (LogSafer).
In order to offer better insurance services to clients, LogSafer will require untampered true data as quickly as possible to make accurate claims payouts as well as improve the client’s entire risk management system upon review offering a more valuable proposition to clients in the future. Better identifying the various risks faced with each link in cross-border supply chain, take appropriate preventive measures to reduce the risk probability, provide appropriate insurance product transfer risks and carry out efficient claims recovery after the risk ads to the value proposition of the VeChain solution across the entire industry.
Blockchain technology allows multiple parties to participate in recording data that cannot be tampered. Using the unique VeChainThor blockchain+Internet of Things technology, enterprises can better track risk and record the real data. The solution in place allows companies to master the latest risk dynamics within their supply chain as well as research and explore better alternatives with the verified data. This advantage can save the creation of millions of documents associated with data collection and verification in the payment link, substantially reducing the payment review time. The realization of smart contracts within this industry will genuinely bring “instant compensation” for the companies producing a much more profitable business model. This is the ultimate experience for the insured and is most profitable for all parties.
Example: A fish farmer sends a cargo of fish from Japan to California, and buys an insurance policy from our partner LogSafer to cover this cargo of fish. Something happened enroute and the data grabbed from the VeChain sensors strategically placed within the fish cargo had indicated a certain high temperature reached and an extensive exposure period, a condition which is impossible for the fish to stay fresh. VeChain sensors retrieve that data, and upload that data on chain, and the state of the data triggers a smart contract execution, then the client automatically files a claim and receives a payout by the insurance company.
LogSafer CEO Mr. Guo Hui believes:
Cross-border supply chain risk management is faced with problems such as lack of mutual trust, repeated collection of documents or data, lack of real-time risk data, and so on, resulting in high costs and low efficiency. Through the efficient coordination mechanism provided by the blockchain, efficient risk management and control ecology will be created, which will greatly increase the efficiency of risk management and control at each link and further reduce transaction costs.
As a leader in supply chain risk management, LogSafer has helped thousands of companies solve supply chain risk control problems through professional teams and its platform. By leveraging the strengths of VeChain, companies can now be provided double insurance for their routine operations alongside other companies on the chain while benefiting from VeChainThors ability to handle their unique use case and pain points directly. This established collaboration truly utilizes the strengths of both companies and significantly promote the utilization and adoption of VeChainThor in supply chain management and control services.
With more and more companies using the VeChainThor platform opportunities arise for users such as LogSafer to participate and form a complete ecosystem within the blockchain that allows companies to collaborate securely and manage, secure, share, and verify private data sets while transmitting value. Through the combination of VeChains IoT solutions and VeChainThor, VeChain can increase the strength of all industries while decentralizing power and empowering data owners.
LogSafer integrates risk identification, risk reduction, insurance, claims and legal services. It is the largest cross-border supply chain risk management and control platform in China and the first one-stop international logistics insurance-claims-forensic platform in China. The team members all have a background in shipping, insurance, maritime, logistics or trade, and can successfully respond to the most complex risk management challenges in the logistics business. Currently, LogSafer has partnered with more than 20 insurance companies such as Allianz, PICC, AIG, Swiss Re, Pingan, and exceeded customers of more than 2,500. LogSafer reduces the insurance cost by at least 30% and shortens the claim period by at least 50% by having a insurance network and client list as extensive as they do. They are committed to making use of blockchain, big data, and internet technologies making supply chain risk management simpler, faster, more effective, and cheaper.