Insurtech Otonomi raises $3.4m to build a first-to-market blockchain-powered parametric cargo platform

Insurtech Otonomi raises $3.4m to build a first-to-market blockchain-powered parametric cargo platform

Published: 19-10-2022 11:02:00 | By: Pie Kamau | hits: 4350 | Tags:

Insurtech startup Otonomi announced it has closed a $3.4 million oversubscribed funding round, to build a first-to-market blockchain-powered parametric cargo platform.

The funding round was led by ATX Ventures, followed by GSR VenturesGreenlight Re InnovationsPunja.VCAltari VenturesSoundboard Venture FundBlackhorn VC, Bering WatersREFASHIOND Ventures and a number of specialized angels and syndicates.

Lately, hindering inflation, recession risk and global logistics crisis has been all the rage in chatter. Nearly $10 Billion of estimated losses have been caused by supply chain disruption. Yet, the outlook for freight companies and insurers to get themselves out of their current trough remains bleak.

In a markedly different tone, Otonomi's CEO Yann Barbarroux has strong ideas about the future of the logistics tech sector. With his Co-founder and CTO Jeremy Sutton, he founded Otonomi in 2020, a Brooklyn-based tech-enabled insurance startup focusing on freight insurance.

Chris Shonk, Partner and Co-founder, ATX Ventures Partners: "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. 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."

The company is first to market in providing parametric cargo delay insurance (a fast, transparent and automated delay insurance product) that unlocks claims resolution in 45 minutes instead of 45 days, compressing administrative costs by up to 90%.

Otonomi's management tapped into six critical industries to assemble a core team of resolute go-getters in finance, insurance, blockchain, UX design, marketing, and security. The team thrives in bringing value-add to clients and insurers, both sectors screaming for a refresh.