A significant advancement in supply chain insurance is being pursued in Singapore through the integration of blockchain technology. Enhanced security and transparency in cargo tracking and claims processing are being targeted by TradeSecure, a Singaporean Insurtech firm spearheading this initiative. Immutable records of all transactions and events related to the insured cargo are maintained on a distributed ledger. This distributed ledger technology (DLT), commonly known as blockchain, provides a shared, tamper-proof record of information, accessible to all authorized parties involved in the supply chain.
Fraudulent activities, such as falsified documentation or inflated claims, are expected to be significantly reduced through the use of blockchain. The transparent and auditable nature of the blockchain makes it considerably more difficult to manipulate records without detection. Disputes between parties involved in a claim, such as shippers, insurers, and logistics providers, are also anticipated to be resolved more efficiently. With all relevant information readily available on the blockchain, the process of verifying claims and determining liability is streamlined. Operational efficiency throughout the supply chain is aimed to be improved by automating various processes and reducing manual paperwork. The time and resources required for administrative tasks are expected to be significantly reduced.
This adoption of blockchain technology is viewed as a substantial step towards modernizing the marine and cargo insurance sector in the region. The increased security and transparency offered by blockchain are expected to build trust among stakeholders and facilitate smoother transactions. The platform developed by TradeSecure is expected to be adopted by other regional players in the insurance and logistics industries.
Lastly, this wider adoption is anticipated to create a more robust and interconnected ecosystem for supply chain management. The integration of blockchain into supply chain insurance is seen as a key driver of innovation and efficiency in the global trade landscape. This advancement is expected to set a new standard for security and transparency in the industry.
