Lloyd’s and six market syndicates have signed an agreement to use Parsyl’s new Internet of Things (IoT) risk management solution to improve marine cargo performance.

The syndicates participating in the initiative include AXA, CNA Hardy, QBE, Ascot, Antares and Beazley.

Lloyd’s IoT ventures

Parsyl, a venture-backed supply chain data platform, enables shippers, retailers and insurers understand the quality conditions of sensitive and perishable products.

The insurers will use Parsyl’s IoT quality assurance sensors and risk management solution to deliver crafted risk coverage for sensitive shipments.

The new initiative has been designed for products such as temperature controlled foods, biological pharmaceuticals and sensitive life science and high-tech products, which require specialist transport and storage.

As per the agreement, Parsyl’s sensors will be kept on prescribed shipments that will read contextual data, such as cargo tracking, weather and telematics data and use them to generate performance as well as risk mitigation insights into the travel of a product through the entire supply chain.

Parsyl’s hardware, integrated with data analytics, will enable insurers to boost profitability, reduce risk, and improve claims.

Lloyd’s head of innovation Trevor Maynard said: “As a market, it is imperative that we embrace new technology solutions that can lower costs and improve risk selection.

“We created Lloyd’s Lab to pursue innovative, technology driven solutions like Parsyl that can address the unique and rapidly changing demands of the Lloyd’s market, and are proud to be announcing this initiative as an outcome of the programme.”

The new collaboration is expected to give a boost to the $16bn marine cargo market, which has been unprofitable for years.