Apollo partners with ZenHedge on new parametric freight product
Apollo, a Skyward Group Company has announced that it is in partnership with ZenHedge, a US-focused insurtech start-up, to launch what they say is a first-of-its-kind parametric insurance product Freight Expense Insurance designed to protect US shippers against increased freight costs caused by trucking carrier tender rejections.
According to the companies this underscores Apollo’s commitment to supporting innovative underwriting propositions that respond to real-world commercial challenges.
ZenHedge’s proprietary platform analyses data from shippers’ Transport Management System (TMS) data to model trucking lane risks and tender rejection events enabling efficient, data-driven risk transfer. The product launches in the US market, where trucking accounts for more than 70% of national freight movement and where this risk remains largely uninsured.
Apollo sponsored ZenHedge as a Lloyd’s approved coverholder, bringing its underwriting expertise, innovative leadership and market access to support the development and scale of this new solution with ZenHedge’s technology-led approach, supported by Aon across its reinsurance, digital economy broking and delegated authority teams in the US and London.
Hayley Budd, class leader, innovation, Apollo, said: “We are delighted to partner with ZenHedge and Aon to bring a truly innovative solution to one of the challenges in US supply chains. Tender rejections create costly uncertainty for shippers of goods, and ZenHedge offers a practical, data-driven way to protect clients’ operations from such tender rejection events. This partnership reflects our commitment to supporting forward-thinking MGAs who are reshaping how risk is understood and insured, especially in global supply chains. We are excited about the scale and future potential this product and partnership represent.”
Krishnan Kandasamy, founder and chief executive of ZenHedge, added: “ZenHedge is proud to partner with Apollo and Aon, leaders in the insurance innovation space, to bring Freight Expense Insurance product to the US market. For far too long, shippers have relied on a patchwork of digital freight technologies and trucking carrier relationships to manage freight transportation risks. Our product addresses an unmitigated insurance gap in the vital supply chain ecosystem.
“Apollo’s innovation team has had a successful track record of partnering with insurtech startups in bringing breakthrough technologies, risk models, and underwriting capabilities to the insurance industry. Aon’s Reinsurance, broking, and delegated authority teams provide a seamless end-to-end platform for insurance startups like ZenHedge to succeed. We are grateful for the mentorship and support offered by Apollo and Aon and look forward to the immense potential of this breakthrough product and the opportunities it presents.”
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