[E-Daily Kim Seung-kwon Reporter] The pharmaceutical cold chain (low-temperature distribution system) logistics process has long been referred to as a “black box.” In the pharmaceutical and biotech logistics sector, there have been repeated instances where an entire shipment of fresh and biopharmaceuticals—worth billions of won—was scrapped due to even slight temperature deviations during transport, even in the absence of any obvious malfunctions in freezing or refrigeration equipment. However, existing cargo liability insurance had clear limitations. Coverage was capped at the statutory limit of 1 billion won, and temperature deviations of unknown cause were classified as exclusions, leaving shippers with significant gaps in coverage.

There is an innovative company aiming to revolutionize this outdated logistics insurance landscape with “unvarying sensor data.” That company is “Willog,” a specialist in AIoT (Artificial Intelligence of Things)-based supply chain intelligence solutions. Based on the vast amount of transportation data accumulated from logistics operations, Willog recently launched its subsidiary, “Willog Insurance.” Through this subsidiary, the company has successively introduced parametric (index-based) insurance and umbrella (excess coverage) insurance, marking the start of its full-scale effort to eliminate blind spots in logistics risk management.

In an interview with Pharm e-Daily, Yoon Ji-hyun, CEO of Willog, stated, “Numerous pharmaceutical and biotech companies are facing unnecessary costs and tedious insurance disputes due to the lack of transparency in the logistics process.” She added with confidence, “The transparent data collected in real time by our devices will become the standard language for insurance underwriting and claims payments, acting as a game-changer in the cold chain insurance market.”

“Filling the Gaps in the 1 Billion Won Limit and ‘Cause Unknown’ Exclusions”… 15 Billion Won Umbrella Coverage and Parametric Insurance

The biggest concern in the pharmaceutical and biotech logistics sector is the “compensation gap” that remains after an incident occurs. Existing cargo liability insurance, which is mandatory in nature, has a fixed coverage limit of 1 billion won—far too insufficient to cover losses involving high-value biopharmaceuticals. To make matters worse, temperature deviations of unknown cause are classified as exemptions, and product disposal and re-shipping costs are also largely excluded from compensation.

Willog Insurance’s “Umbrella Insurance” is specifically designed to address this gap. It provides additional coverage of up to 15 billion won for losses exceeding the statutory limit (1 billion won) of existing cargo liability insurance. Just as a large umbrella offers broader protection, this policy has dramatically expanded the scope of coverage to include temperature deviations of unknown cause—which were previously excluded.

The “Parametric Insurance” product, launched alongside it, is structured to pay out immediately if pre-set thresholds are exceeded. CEO Yoon likened this to the principle of “airline delay insurance,” where compensation is paid even if the delay is just one minute.

“Cancer vaccines must be maintained at 2–8 degrees Celsius, but if the temperature rises to 9 degrees and the efficacy declines, they cannot fulfill their full potential,” he explained. “Whether there has been a deviation from the baseline is transparently verified by Willog’s tamper-proof sensor data.” The baseline itself is not arbitrarily set by Willog but is established in consultation with insurers and reinsurers, reflecting GMP standards for biological products and the client companies’ own management standards.

“The T-Map of the Logistics Industry”: Targeting ‘Payment Within 15 Days’ by Understanding the Context

The core competitive advantage in insurance lies in “payout speed.” In the past, when an accident occurred, the shipper had to prove the damages themselves, and insurers spent anywhere from 1–2 months to as long as a year conducting on-site inspections, interviews, and liability investigations. CEO Yoon pointed out, “This process created a chronic pain point where shippers’ funds were tied up and insurers’ manpower was tied up.”

Willog has boldly bypassed this conventional claims process using data, setting a target of “payment within 15 days.” CEO Yoon explained this mechanism by drawing a parallel to “T-Map Driver’s Insurance.” Just as safe driving lowers premiums, when Willog’s data accumulates to demonstrate thorough temperature management, insurers use this as a basis to offer benefits and provide swift compensation in the event of an accident.

The foundation for this innovation lies in the ability to analyze “context” beyond the simple metrics collected by the device. This is because the system goes beyond merely functioning as a thermometer; it is supported by software analysis that combines data on whether the vehicle doors were open or closed at the time, driving conditions, and road surface conditions. The recently launched “Willog Care Plus” is also independently filling in these gaps by providing rapid cash support—within certain limits—for disposal and re-transportation costs based on accident detection data.

Will it bridge

the gap with global powerhouse Parsyl?… The key to success lies in becoming an MGA within three years

The driving force behind Willog’s ability to secure 15 billion won in underwriting capacity by convincing conservative reinsurers in a short period is its vast amount of actual transportation data. The company, which started with just two people in 2021, has invested 30 billion won in service enhancement and has grown into an organization of over 70 employees. It is rapidly expanding its presence, having entered nine countries, including Singapore, Japan, and the United States.

However, there are clear challenges that must be overcome to become a true game-changer. Above all, parametric and umbrella insurance are still in their early stages, so there is a lack of verified claims history for major incidents. The “payment within 15 days” promise also needs to be thoroughly validated in real-world scenarios.

In particular, the key challenge is narrowing the gap with the U.S.-based company Parsyl, which has achieved “payment within two days” through its data-driven marine cargo insurance model. While Parsyl operates under a structure where it directly underwrites risks through Lloyd’s syndicates, Willog Insurance started as a brokerage model and is assessed as still having limitations in terms of authority and speed.

CEO Yoon presented a “transition to an MGA (Master General Agent)” as a long-term roadmap to overcome these challenges. “The key to success is transforming into a global MGA with our own underwriting capabilities within three years,” he said, adding, “We will complete a ‘flawless value chain’ where Willog’s solutions prevent primary risks, and insurance covers the minor gaps that inevitably arise.”