How airlines use insurance as a growth strategy – and what logistics can learn
In retail ecommerce logistics, insurance is often seen as a safety net—something we rely on when things go wrong. Or not thought about at all, especially in the last-mile where there has been a significant insurance gap for years that unregulated services have addressed or just taking the risk and any hit on the bottom line. But what if insurance could be much more than that? What if it could become a strategic tool that not only protects but actually drives efficiencies, optimises performance, and supports long-term growth?
Let’s take a page from the aviation industry—an industry where insurance is deeply embedded into day-to-day operations. For airlines, insurance isn't just a cushion against accidents; it’s an integral part of their operational strategy. Here's how they do it:
1. Managing Risk Proactively:
Airlines use hull insurance and liability coverage not just to protect against the cost of accidents but to manage risks across their entire fleet and operations. This allows them to make long-term strategic decisions about fleet expansion, route planning, and even service quality without the constant fear of catastrophic losses from unforeseen events. They know their risks are mitigated, so they can focus on delivering better service and growing their business.
2. Ensuring Operational Efficiency:
In aviation, performance-based insurance policies help airlines manage the operational risks that come with unpredictable variables like weather, maintenance issues, and third-party liabilities. By embedding insurance into their operational models, airlines reduce the need for hefty cash reserves to cover potential losses. This means they can reinvest that capital into expansion, technology upgrades, and customer experience improvements, creating a more robust and efficient business model.
3. Building Strategic Partnerships:
Airlines don't just buy insurance—they partner with insurers to design coverage that helps them mitigate unique operational risks. These partnerships are designed to support the airline’s goals, whether that’s protecting against fuel price fluctuations or ensuring passenger safety during adverse weather conditions. By collaborating with insurers, airlines turn their coverage into a dynamic tool that helps them grow, rather than just a passive expense.
Now, imagine bringing this same approach to logistics.
For retailers and 3PLs, embedding insurance into your logistics strategy can unlock a world of efficiencies and growth opportunities:
Real-time Monitoring: Just as airlines track performance and risks across their fleets, logistics businesses can use AI-powered insurance solutions to monitor courier performance, detect fraud, and ensure that risks are identified and managed proactively.
Operational Resilience: By using insurance as a tool for performance management, logistics businesses can ensure that disruptions—whether from fraud, damaged goods, or delivery delays—don’t derail operations or hurt the bottom line. Insurance becomes part of the broader logistics strategy, enabling smoother operations and a more resilient business model.
Strategic Reinvestment: Like airlines reinvesting savings from risk mitigation into their fleet and services, logistics companies can reinvest the money saved from reduced fraud, operational errors, and delivery disruptions into innovation and growth, whether that’s improving delivery technology or expanding service offerings.
At Anansi, we believe in this same strategic use of insurance. Our platform integrates regulated insurance with invoice performance monitoring and data-driven fraud insights to help retailers and 3PLs turn insurance into a tool for smarter logistics, greater efficiency, and sustained growth.
