This is insurtech at its best; see a gap in the market and create a product that works.
Superscript has reimagined a product for online retailers that extends cover to international imports and exports, including goods manufactured in Asia and products shipped to North America. The product is also suitable for dropshipping businesses – which manufacture and ship products via 3rd parties abroad directly to customers.
The product, delivered through a monthly subscription, offers a comprehensive list of covers for all kinds of ecommerce and online retailers, as well as some special covers, including:
Manufacturing, importing and white or private labeling
Contents and stock at a pop-up-shop
Stock in 3rd Party Logistics fulfilment centre
Products out for delivery with a postal or courier service
The global dropshipping market has increased by an estimated 53% since 2020, now estimated to be worth £165 billion and experts predict this to rise to £415 billion by 2027. This represents a rapidly growing area of the ecommerce industry that is opting to store stock and fulfil orders via 3rd party logistic providers. As a result, a large chunk of online retailers are struggling to find adequate cover from insurers which largely exclude businesses that don’t store their own inventory via 3rd parties or in the UK.
Ben Rose, co-founder and Chief Underwriting Officer at Superscript, said:
“Platforms like Shopify, Alibaba, Etsy and Amazon have enabled more ecommerce startups to set up and thrive, minimising the friction of national borders when fulfilling orders. With the explosion in popularity of dropshipping, and the amount of online retailers manufacturing and shipping via 3rd parties abroad, insurers have to keep pace with how the industry is evolving.
“It makes no sense to exclude non-UK/Europe manufacturers from policies, as these account for a significant proportion of all online retailers. I’m proud that Superscript is releasing this inclusive product for the new generation of successful online retailers.”
Online retailers and ecommerce businesses can find out more information about the new product, here: https://gosuperscript.com/business-insurance/industries/ecommerce-insurance/