Lombard Australia Holdings (LAH), the holding company of Assetinsure, has backed Sydney-based FreightInsure’s goods-in-transit insurance which is integrated into the freight booking process of Australia’s carriers.

The insurtech is part of FreightSafe Group, the largest third-party claims manager to the transport and logistics industry in Australia, and is launching with many of FreightSafe’s largest clients. Assetinsure will provide capacity.

FreightInsure co-founder and CEO Simon Schwarz, who was formerly CFO at BizCover, says insuring freight deliveries such as laptops, bicycles, musical instruments and household goods can be “extremely costly and inefficient”.

He points to large excesses and annual upfront premium payments under traditional marine transit policies.

FreightInsure allows consignors – often small businesses shipping their products on a daily basis – to cover their delivered goods against loss or damage in transit under pay-as-you go “mini-policies,” with large cover limits up to $50,000, no excess payments and premiums from just 70c per consignment.

“Our product will also serve to align the relationship between consignors and their freight carriers, removing the conflict that often arises when goods in transit are lost or damaged,” Mr Schwarz said.

FreightSafe Director Jonathan Bass, who is co-founder and Director at FreightInsure, says proprietary technology will allow the team to manage tens-of-thousands of claims annually for goods lost or damaged in transit, mostly within 24 hours.

“FreightSafe has nearly two decades of comprehensive data on freight shipments and associated claims, which allows precision underwriting by FreightInsure in structuring their solutions,” Mr Bass said.

“We are excited to be launching this business with locally strong and globally trusted insurance operators. Lombard and Assetinsure are highly respected in the insurance landscape with a history of … supporting and growing underwriting agencies.”

eCommerce is forecast to grow to 40% of retail sales by 2026, and Lombard says the number of single-carton shipments to consumers is “exploding in volume”, boosting consignments and “providing a strong operating environment for FreightInsure’s new products”.