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.

Cooperation background

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.

Cooperation direction

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.

Future expectation

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.

About LogSafer

The VeChain Foundation is a non - profit entity established in Singapore.