As complexity increases, so does risk. This truth is one of the things that attracted Loadsure CEO, Johnny McCord to cargo insurance.
“I love the intricacies and complexities of the supply chain,” says McCord. “There’s a huge amount of complexity in the way we move cargo today.”
Having been born into an insurance family, McCord had an up-close view of the inefficient distribution processes that put per-load cargo insurance out of reach for many. These challenges inspired him to simplify cargo insurance with Loadsure.
Guided by McCord’s experience, Loadsure delivers an end-to-end digital cargo insurance that combines:
- Artificial intelligence and automation
- Deep freight and insurance industry insight
- A human-centric approach to insurance
And through the DAT-Loadsure integration, DAT subscribers can now easily protect their balance sheet and critical business relationships — affordably and in real-time.
However, it’s been quite the journey to get to where we are now.
Rebuilding trust in the insurance industry
In the past when insurance wasn’t regulated, providers hid insurance market losses and wrapped liability in layers of reinsurance. This resulted in a death spiral that nearly brought down the world’s largest insurance market, Lloyd’s of London in the early 1990s.
People were hurting in the aftermath. Those who invested in the market lost everything.
”I remember my dad being nervous telling people what he did for a living because he was a Lloyd’s underwriter,” says McCord. “Insurance has a bad name.”
And, let’s face it, the insurance industry created this distrust.
But McCord is on a mission to rebuild trust in insurance and to serve the industry he’s most passionate about — cargo and logistics.
Protecting the freight industry businesses people rely on
“One thing that I’ve always loved about insurance is that you’re providing protection,” says McCord.
Unfortunately, many in the freight industry are unaware of today’s global underinsurance crisis — a threat to business sustainability that McCord hopes to address.
Many rely on their carrier’s liability policies alone. People believe they’re fully protected when, in fact, 80-90% of cargo today is under or uninsured. Only when it’s too late do they realize they’re going to be paid just a fraction of their invoice due to tariffs and liability policy formulas — and that’s only if they can prove carrier negligence.
“I want to make sure that a broader coverage is available to those in the freight industry when and if they want it,” says McCord. “It’s not about a hard sell. We’re here to help people manage risk, and manage it on their terms.”
Delivering innovation to cargo insurance
“Right now, we have two very different industries in two very different stages of development,” says McCord. “The North American supply chain, which is rapidly digitizing, and the insurance industry which hasn’t been keeping up with this wave of innovation.”
The 300-year old traditional insurance market was built on human expertise; the ability to sell complex insurance through the skills and knowledge humans brought to the table. If it didn’t fit that mix — like low complexity cargo insurance — it was simply not a policy that could be efficiently distributed into the supply chain network.
McCord saw these pain points in the industry and what his customers were going through. A lack of innovation and efficient processes meant his customers’ needs weren’t being serviced correctly. And many were priced out of the risk management they needed.
It’s why McCord chose to remain in cargo and logistics insurance.
“I had a lightbulb moment,” McCord says. “I really wanted to improve the way that we distributed insurance within the supply chain. Things had to change. Maybe insurance isn’t the most exciting topic in the world, but when you try to embed insurance services, adopt a just-in-time approach, and tailor solutions for an ever-moving supply chain — all to meet the speed in which the world now operates — that’s hugely exciting.”
Now, his fully digital solution delivers instant, granular cargo insurance quotes, and dynamic products specifically tailored to the unique specifications of each load. This enables freight industry professionals to acquire coverage in seconds, while also dramatically reducing their single-trip coverage costs.
A sustainable approach to protecting future growth
Loadsure’s ethos is about support, trust, and empathy — and the company is committed to supporting both the freight and insurance industries.
“We’re not trying to carve the bottom out of the insurance market to win business,” says McCord. “That practice contributes to wild peaks and troughs in the market that drive up insurance premiums for the freight industry and push insurers out of business.”
Rather, Loadsure is creating a sustainable solution that protects the future growth of both.
“We encountered barriers and resistance in the beginning,” says McCord. “But I believed in our pioneering approach. We’re starting this movement, and I’m excited to give back to the freight industry.”