Otonomi has launched a parametric air-cargo insurance program that settles covered triggers within days and cuts claims administration costs by up to 90%, distributed through Solent Freight Services' wholesale network of more than 137 airports and 7,600 forwarding clients in the Americas and Europe.

The program, branded TRACinSURED, pairs Otonomi's parametric insurance structure with Tag-N-Trac's real-time monitoring hardware. Solent does not sell insurance; it supplies the shipment record across its commercial air cargo lanes and express courier network.

How does the policy work?

Before binding, participants set the shipping lane, sensor configuration, defined parametric triggers and the payout amount attached to each event. Coverage is underwritten by A-rated securities through Otonomi Insurance Services LLC, a licensed managing general agent.

Tag-N-Trac's smart labels and trackers monitor location, temperature, humidity, shock, light and tamper events at item, carton or pallet level. The company's AI flags exceptions during transit and produces a condition record used to verify whether a covered trigger occurred.

When the shipment record confirms a covered event, smart contracts and decentralized data oracles settle the claim. Otonomi said payments typically occur within days, with little or no document exchange.

What shipments qualify?

Early access is open to international commercial shippers moving pharmaceuticals, cold-chain products, high-value perishables, electronics and business-to-business parcels through Solent's air freight and express courier lanes. The product is available only to commercial entities and in jurisdictions where it can legally be offered.

What are the limits?

The predetermined payout may exceed or fall short of the actual loss, and the policy does not pay if the defined trigger is not met. Temperature and humidity excursion coverage described by the program is non-parametric and requires proof of loss, administered with the CIO platform.

Coverage is placed on a non-admitted basis and is not protected by state insurance guaranty funds. Policies remain subject to their specific terms, conditions, limits and exclusions. Neither Solent nor Tag-N-Trac acts as an insurer, producer, solicitor or negotiator of insurance; Otonomi handles all insurance inquiries.

Why it matters on the air-freight lane

Parametric structures remove the loss-adjustment disputes that routinely delay air cargo claims, particularly on time-sensitive pharma and perishables shipments where spoilage arguments between forwarders, airlines and insurers can run for months. Tying payout to a sensor-verified trigger shifts the data burden from the claim file to the shipment file.

For Solent's 7,600 forwarding clients, the commercial appeal sits in cash-flow timing as much as in premium cost. A same-week payout on a rejected pharma pallet converts a recoverable ledger item into working capital.

The 90% administration cost saving and day-scale settlement remain the program's central pitch, though Otonomi notes that settlement times and savings are not guaranteed.

What to watch next

The early-access window will test whether forwarders absorb sensor-data requirements into standard operating procedures, and whether non-admitted placement complicates uptake among European pharma buyers that typically require locally admitted cover. Expansion beyond Solent's air network — or onto ocean TEU-level contracts — would mark the clearest signal of commercial traction.