TRACinSURED: Otonomi, Tag-N-Trac and Solent Launch AI-Powered Parametric Cargo Protection

Solent Freight Services, Tag-N-Trac, and Otonomi have launched TRACinSURED, a parametric cargo protection program. By linking real-time IoT sensor data directly to insurance payouts, the partnership eliminates the traditional, lengthy claims negotiation process for logistics, offering fintech and insurtech professionals a blueprint for automated, data-driven risk mitigation in global supply chains.

What was announced

TRACinSURED is a cargo protection program designed to solve the friction inherent in traditional freight insurance claims. The program is administered by Otonomi Insurance Services LLC, a licensed managing general agent, and underwritten by A-rated securities. It functions by paying out a pre-agreed amount when a shipment’s own sensor record confirms that a covered trigger—such as a temperature deviation or a transit delay—has been met.

The technical integration combines Tag-N-Trac’s AI-powered, infrastructure-independent smart labels and trackers with Otonomi’s delay and visibility data and Solent’s air freight network. These smart labels monitor location, temperature, shock, humidity, light, and tamper events at the item, carton, and pallet level. By using smart contracts and decentralized data oracles to verify these triggers, the program can settle claims in a matter of days. This is a significant departure from the industry standard, where settlements often take 45 days or more due to the lack of a shared record between shippers, forwarders, and carriers.

The program addresses a specific market failure where many shippers currently stop filing claims for losses below their deductible or abandon disputed claims due to the administrative burden. TRACinSURED connects existing visibility hardware directly to the payout mechanism. The program is currently targeted at the Americas and Europe, leveraging Solent’s network of over 137 airports. For shippers of perishable goods like pharmaceuticals or fresh produce, the system allows for the binding of a defined trigger against a live record, effectively cutting claims administration costs by up to 90 percent.

"TRACinSURED brings those capabilities together in a way that has enormous potential across the transportation industry, air cargo, ocean freight, courier and express and beyond. When real-time shipment data can be connected directly to protection and rapid resolution, the possibilities are virtually limitless."

Simon Milne, CEO of Solent Freight Services.

The companies involved

Solent Freight Services is a 100 percent neutral wholesale freight forwarder headquartered at JFK International Airport. Operating as a virtual airline, the company provides freight systems and a network spanning more than 137 airports, serving over 7,600 freight forwarding clients across the Americas and Europe. Its expertise lies in the handling of highly sensitive and perishable cargo, having spent over three decades managing the logistics for fresh-cut flowers, fruits, and pharmaceuticals.

Tag-N-Trac provides the underlying technology stack for the partnership, including the AI, platform, and IoT devices. Its industry-first smart labels are designed to provide ground truth data without requiring external infrastructure, ensuring a continuous chain of custody for shipment data. These devices are capable of monitoring environmental factors at multiple levels, from individual items to entire pallets, providing the granular data necessary for parametric triggers.

Otonomi is an insurtech firm specializing in parametric cargo products. As a managing general agent, it utilizes smart contracts to automate the insurance lifecycle. By focusing on defined, measurable events rather than traditional loss adjustment, Otonomi aims to resolve transit disputes through data-driven verification. The company's platform is built to handle the complexities of transit delay and environmental triggers, providing a faster alternative to the manual negotiation processes that currently dominate the cargo insurance market.

What this means

This announcement signals a significant shift toward the algorithmic underwriting of physical risk. By removing the loss adjuster from the loop, TRACinSURED puts immense pressure on traditional marine and cargo insurers who rely on manual evidence assembly. The move to price a "lane" rather than just "declared value" suggests a more sophisticated understanding of operational risk, but it also raises questions about data liability. If a sensor fails or a data oracle provides an incorrect feed, the entire parametric model risks collapse. However, for the high-velocity air freight sector, the promise of near-instant liquidity after a loss is a powerful competitive advantage.