To Combat Mounting Cargo Theft, Verisk Launches CargoNet® RouteScore API

Rhea-AI Summary

Verisk (VRSK) has launched CargoNet® RouteScore API, a new solution to combat rising cargo theft in the U.S., where 2024 losses are projected to be 25% higher than 2023's record levels. The solution generates risk scores from 1-100 for cargo routes across the U.S. and Canada, considering factors like cargo type, value, route details, and theft history at truck stops.

The RouteScore API uses proprietary algorithms and best-in-industry data to provide actionable insights for cargo security. High-risk scores can trigger enhanced security measures such as tracking devices, driver teams, or advanced parking arrangements. The solution is available in API format for integration with Transportation Management Systems and other platforms, including supply chain risk management, fintech, insurtech, and telematics systems.

Positive

• Launch of new revenue-generating product (CargoNet® RouteScore API)
• Expansion of service offering in growing market (cargo theft prevention)
• Integration capabilities with multiple platforms enhancing market reach

Negative

• None.

Insights

Supply Chain Security Analyst

The launch of CargoNet RouteScore API represents a strategic move that could significantly impact Verisk's market position in the risk analytics space. The timing is particularly crucial, as cargo theft has become an increasingly costly problem for the transportation industry, with losses reaching unprecedented levels. This creates a compelling value proposition for the product.

The solution's competitive advantage lies in three key areas:

• Proprietary algorithm leveraging Verisk's extensive historical data, creating a significant barrier to entry for competitors
• API format enabling seamless integration with existing systems, reducing adoption friction
• Comprehensive risk scoring incorporating multiple variables, providing actionable intelligence for real-time decision-making

From a revenue perspective, this product opens multiple monetization channels:

• Direct API licensing to transportation companies
• Integration with insurance providers for risk assessment and premium calculations
• Partnerships with fintech and insurtech platforms
• Value-added services for existing Verisk clients

The solution's ability to influence insurance premiums through data-driven risk assessment could create a network effect, potentially making CargoNet RouteScore an industry standard. This would strengthen Verisk's position in both the insurance analytics and transportation security markets, potentially driving long-term revenue growth and margin expansion.

The API's scalability and integration capabilities suggest minimal incremental costs for customer acquisition, which could lead to attractive margins once the initial development costs are recovered. This aligns with Verisk's strategy of building high-margin, subscription-based data analytics products.

CargoNet’s RouteScore API bolsters cargo security with advanced, data-driven risk scoring

JERSEY CITY, N.J., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Cargo theft losses in the U.S. continue to climb: 2024 is projected to record 25 percent more losses than 2023, a year that also reached all-time highs for reported incidents. Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today launched CargoNet^® RouteScore API, a solution aimed at significantly minimizing the risk of cargo theft. RouteScore API uses a proprietary algorithm to generate a cargo theft route risk score that provides a relative measure of probability that crime and loss will occur along any route in the U.S. and Canada. 

Verisk CargoNet is uniquely positioned to deliver an industry-leading cargo theft scoring algorithm that provides unparalleled accuracy and insight with the use of best-in-industry data and analytics. 

RouteScore measures the probability of a loss for individual risks by assigning a score of 1 to 100 — with 1 representing the lowest likelihood. RouteScore is based on critical factors such as cargo type, value, length of haul, origin, destination, day of the week, and the theft history of truck stops. In addition to generating a score, the model also observes the key variables that most influenced the score and provides a list of the riskiest truck stops along the route.  

“RouteScore exemplifies our commitment to helping the industry manage and mitigate risk,” said Ryan Shepherd, general manager of Verisk’s CargoNet. “By providing actionable insights through advanced data analysis, Verisk is empowering the insurance and the transportation industry to protect their assets and ensure a safer delivery of goods.” 

Empowering companies to protect their cargo proactively, a high-risk score of 98, for example, may prompt the implementation of additional security measures such as tracking devices, driver teams, relays, escorts or securing parking spots in advance and more. 

Additionally, users can align high-risk lanes with best-in-class carriers, helping to ensure optimal security measures are in practice. This powerful solution is available in an API format, facilitating integration with third-party Transportation Management Systems (TMS) and proprietary systems. Additional third-party platforms, such as supply chain risk management, fintech, insurtech and telematics platforms, will also be able to source the solution and make it available for customers. 

For more information about this cargo security solution, visit CargoNet’s website at: https://www.cargonet.com/  

About Verisk 

Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom. 

FAQ

What is Verisk's (VRSK) new CargoNet RouteScore API and how does it work?

CargoNet RouteScore API is a cargo theft prevention solution that generates risk scores (1-100) for shipping routes in the U.S. and Canada. It analyzes factors like cargo type, value, route details, and truck stop theft history to assess theft risk probability.

How much have cargo theft losses increased in 2024 according to Verisk (VRSK)?

According to Verisk, cargo theft losses in 2024 are projected to be 25% higher than 2023, which already saw record-high reported incidents.

What security measures does VRSK's RouteScore API recommend for high-risk routes?

For high-risk routes, the system recommends implementing tracking devices, driver teams, relays, escorts, advance parking spot securing, and alignment with best-in-class carriers.

Which platforms can integrate with Verisk's (VRSK) new RouteScore API?

The RouteScore API can integrate with Transportation Management Systems (TMS), supply chain risk management platforms, fintech, insurtech, telematics platforms, and proprietary systems.