A cargo insurance program that pays claims within days using real-time sensor data launched this week, targeting pharmaceutical, cold-chain and high-value shipments moving across an air freight network spanning more than 137 airports.

Solent Freight Services, tracker manufacturer Tag-N-Trac and insurtech Otonomi have combined forces on TRACinSURED, a parametric cargo protection product now in early access for international commercial shippers. Otonomi Insurance Services LLC, a licensed managing general agent, designs and administers the coverage, which underwriters backed by A-rated securities write on a non-admitted basis.

The program links three functions that historically sat in separate silos: shipment monitoring, freight forwarding and claims settlement.

How does the parametric trigger work?

Tag-N-Trac smart labels and trackers monitor shipments at item, carton or pallet level, recording location, temperature, humidity, shock, light and tamper events throughout transit. The company's artificial intelligence flags exceptions while the freight is still moving.

Before coverage is bound, the parties establish the shipping lane, sensor configuration, policy triggers and applicable payouts. When the resulting shipment record verifies that a defined parametric trigger occurred, the policy pays a predetermined amount — with little or no document exchange, according to Otonomi.

The mechanics carry a trade-off. The payout may be more or less than the actual loss, and the policy pays nothing if the defined trigger is not met. That structure shifts underwriting precision onto the quality of the sensor data and the trigger design agreed before binding.

Otonomi said it uses smart contracts and decentralized data oracles to verify triggers, and that its products have settled claims within days and reduced claims administration costs by up to 90%. Those figures are the company's own claims, and Otonomi itself notes that settlement times and cost savings are not guaranteed.

What is covered — and what is not?

The distinction between certified capability and promise runs through the program's design:

• Parametric coverage: defined, measurable events verified by sensor data, paying predetermined amounts.
• Temperature and humidity excursion coverage: non-parametric, requiring proof of loss, and provided in collaboration with the CIO platform.

Solent distributes the shipment record across its commercial air cargo lanes and express courier network. The wholesale forwarder serves more than 7,600 freight-forwarding clients in the Americas and Europe — but does not sell or offer insurance. Neither does Tag-N-Trac; both companies state they are not insurers or insurance producers.

Who can buy it?

Eligible shipments include pharmaceuticals and cold-chain products, high-value perishables, electronics and business-to-business parcels moving through Solent's network. Coverage is available only to commercial entities, and only in jurisdictions where it can legally be offered. Licensed insurance brokers, shippers and forwarders can request information, with Otonomi handling insurance inquiries.

The regulatory posture matters for buyers. Coverage is placed on a non-admitted basis with A-rated securities that are not admitted insurers, meaning policies carry no protection from state insurance guaranty funds. Each policy remains subject to its own terms, conditions, limits and exclusions.

Why it matters for air cargo

For cold-chain and pharmaceutical shippers, the model addresses a persistent friction point: conventional cargo claims can take weeks or months, with documentation disputes stretching timelines further. A sensor-verified trigger that pays a fixed amount within days — if the technology and claims record bear out Otonomi's figures — would change the economics of loss recovery for high-value perishables and temperature-sensitive freight.

The program is in early access, and the performance claims rest on Otonomi's prior product history rather than audited results from TRACinSURED itself. How quickly payouts actually land on Solent's lanes, and whether shippers accept payouts that may diverge from actual loss, will determine whether parametric cargo cover moves from niche pilot to a standard option in air freight insurance.