Marsh deliveryPRO is a customisable usage-based insurance policy for helping US businesses in addressing the increased demand for same-day delivery of their products in a more efficient manner
Marsh deliveryPRO last mile solution launched by Marsh and AXA XL for US businesses. (Credit: frabre from Pixabay)
Insurance brokerage firm Marsh has joined forces with AXA XL to launch a last-mile delivery insurance solution called Marsh deliveryPRO in the US to enable businesses to meet the surge in demand.
The newly introduced customisable usage-based insurance policy is said to help US businesses to address the increased demand for same-day delivery of their products in a more efficient manner.
According to the partners, several grocers, delivery network firms, restaurants, retailers, and other businesses are using the services of individual drivers as employees or in a “gig” independent contractor capacity for coping up with the surge in demand for delivery during the Covid-19 crisis.
The partners said that in such cases, the own vehicles of drivers are used. The presently available commercial auto liability insurance for such delivery can be hard to get and is usually based on outdated models such as previous year revenues, which leads to inefficient pricing, said the partners.
Marsh said that in order to address such issues, it has partnered with AXA XL and Arity, a mobility data and analytics company, to develop Marsh deliveryPRO as a price-by-mile insurance solution for letting businesses to pay only for the coverage they need.
The company said that through Marsh deliveryPRO, its clients can buy a minimum of $500,000 in exclusive third party bodily injury and property damage auto liability capacity from AXA XL. This will be in excess of a minimum of $500,000 self-insured retention for their exposures to hired and non-owned deliveries.
AXA XL global risk management president Chris Kopser said: “AXA XL is committed to providing tailored solutions that address emerging risks, particularly in the sharing economy and mobility space. Our relationship with technology innovators and strong distribution firms like Arity and Marsh respectively, empower us to help address the evolving needs of our clients.”
How the Marsh deliveryPRO policy works
According to Marsh, the new policy works like a primary auto coverage when the driver is on an active delivery and will be monitored by the deliveryPRO platform powered by Arity or other existing technology.
Premiums for the Marsh deliveryPRO policy will be based on the number of miles driven for the delivery, thereby enabling insurance costs to scale with a business’ growth.
Marsh said that pay-per-claim third-party claims administration services and claims consulting are also available.
Marsh US sharing economy and mobility practice head Robert Bauer said: “Many businesses have had to ramp up their existing delivery services or convert from in-person sales to on-demand deliveries overnight as a result of the global pandemic. Even when the crisis is over, last-mile delivery will likely continue to grow.
“With Marsh deliveryPRO, businesses can access usage-based insurance, pay only for what they need, and meet the surge in demand for delivery.”