Otonomi, an InsurTech and parametric cargo insurance platform, has raised $3.4m in a funding round.
According to a report by Reinsurance News, the round was led by ATX Ventures, followed by GSR Ventures, Greenlight Re Innovations, Punja.VC, Altari Ventures, Soundboard Venture Fund, Blackhorn VC, Bering Waters, REFASHIOND Ventures and a number of specialised angels and syndicates.
Founded in 2020 by Yann Barbarroux and fellow co-founder and CTO, Jeremy Sutton, Otonomi set out to transform freight insurance.
The company provides parametric cargo delay insurance that unlocks claim resolution in 45 minutes, as opposed to 45 days that freight carriers may be used to.
The Brooklyn-based InsurTech said it operates on customer-centric principles: automated operations, algorithmic underwriting and process transparency.
This is all the more important given the supply chain issues experienced globally since the pandemic.
Disruptions in manufacturer operations and uncertainties in shipping lines, compounded by explosive growth in demand, have inflicted immense strain on the logistics and insurance sectors. Shipment delays and interruptions affecting 62 million metric tons of cargo have become the bane of the industry.
Chris Shonk, partner and co-founder at ATX Ventures Partners, said, “Otonomi is bringing a new product to market by building complex models to be able to profitably underwrite insurance against delays in shipments of freight. Traditionally, insurance at the point of sale has been focused on damages to goods. However, costly delays often arise across air, maritime, trucking, and last-mile logistics.
“Now brands, retailers, project managers, freight forwarders, TMS’s, and insurance brokers will have access to a better offering. Otonomi has a great team positioned to bring together aspects of parametric insurance, risk related to supply chain and shipment delays, and highly embeddable distribution.”
Earlier this year, PayCargo, a logistics payments and data infrastructure platform, collected $130m in a funding round from funds managed by Blackstone Growth.
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