How Altana is Powering Trade Disruption Insurance

Altana, the company behind the ‘world’s first’ Value Chain Management System, made headlines earlier this year when it was catapulted to unicorn status.

Now, the firm’s AI-enabled technology is powering a new trade disruption insurance facility launched by McGill and Partners in collaboration with Tokio Marine Kiln (TMK) and Convex.

With limits of US$95m, the facility supports the understanding and underwriting of trade disruption risk and will enable substantial coverage for clients navigating fluctuating trade between specified locations.

“Given the current geopolitical climate, the launch of our groundbreaking trade disruption facility is exceptionally timely, as incidents of this nature are on the rise,” comments Nicky Payne, Partner of Capital Solutions and Treaty Reinsurance at McGill and Partners, an independent global specialty insurance and reinsurance broker.

“From the start, McGill and Partners has been built on digital-first principles. We understand the importance of capitalising on this technology, which allows us to pioneer unique and innovative solutions for our clients. This product is a clear demonstration of those principles.

“Working with TMK and Convex – both recognised leaders in the market for trade disruption risk – was an obvious choice. I am proud that, together, we have brought this facility to the market for our clients.”

AI offers enhanced visibility

Altana’s AI platform enhances the client and underwriter experience by improving service speed and accuracy, while streamlining the preparation and review of trade disruption insurance (TDI) submissions. 

Increased visibility enables underwriters to offer broader coverage and higher limits, across all sectors and geographies. It also provides clients and underwriters with a dynamic, comprehensive view of the world’s interconnected supply chains.

Ed Parker, Head of Special Risks at TMK, says Altana’s AI capabilities would enable an enhanced all-round offering for clients. 

“TMK has been at the forefront of innovation in this class since we launched the world’s first trade disruption cover more than 30 years ago,” Ed continues.

“Driving and supporting new solutions which can address the challenges our clients are facing is core to our offering and central to TMK’s business philosophy.

“Supply chains globally have become increasingly complex and their fragility has been underscored by a series of geopolitical shocks in recent years. AI offers the potential for us to better understand our clients and track the movement of goods and the aggregation of exposures in real time. 

“These new tools can enhance our offering, allow us to broaden our terms due to a greater insight into our clients’ businesses and enable us to further extend our support across supply chains.”

Altana’s remarkable growth

Founded in 2019 by industry pioneers Evan Smith, Peter Swartz and Raphael Tehranian, Altana was created to address a perceived lack of visibility across siloed supply networks.

The business has connected and organised the world’s most comprehensive body of supply chain data ever assembled to create a shared source of truth on the global supply chain network. 

In July, Altana secured a US$200m Series C investment led by Thomas Tull’s US Innovative Technology Fund (USIT), resulting in a valuation of US$1bn. 

“Managing supply chain disruptions is a key priority for risk managers,” adds Evan, who serves as Co-Founder and CEO at Altana.

“This TDI facility represents an important step toward the delivery of AI-powered insurance solutions. We’re excited to join forces with McGill and Partners, TMK and Convex to support businesses in managing through increasing global supply chain dislocations.”

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