Security and Risk Transfers in the Supply Chain: A Top Concern

Q: What are the main challenges in assessing risk in logistics operations and what impact has SafeLink had on helping clients streamline operations?

A: A key challenge in supply chain management is insecurity, which unfortunately continues to grow in the country. When facing such risks, the best approach is to manage or transfer them through financial products like insurance. We streamline the insurance procurement process through technology to enhance efficiency. The logistics industry is highly demanding due to its continuous operational nature, requiring providers with excellent customer service available 24/7. 

Q: How has the company developed an understanding of the security reality of Mexico and how has that helped it improve its service and grow its presence?

A: One of our key advantages is our specialization, which allows us to offer products specifically designed for controlling and transferring logistics risks. We achieve this through cargo insurance and active monitoring services, which complement each other as security measures. This approach has enabled us to effectively manage our clients' supply chain risks. Moreover, our specialization has been instrumental in understanding Mexico's security challenges. With over 1,200 active clients, we have amassed substantial data and insights. This deep industry presence allows us to understand our clients' needs nationwide better than anyone else in the insurance sector, and to shape our service offer accordingly.

Q: Given that insurance and large-scale operations like SafeLink generate large amounts of data, what software or tech tools does the company implement to streamline its processes?

A: Data is a crucial point for SafeLink. We are a technology-enabled company, driven by our proprietary software development. Recognizing technology as a significant competitive advantage, we opted to develop our own systems. We have an in-house software development team that created a system that touches every aspect of our business. This includes a CRM for our salesforce, an automated policy issuance system where clients can secure shipments within minutes, and modules for managing claims efficiently.

We continuously invest in and enhance this proprietary system. We recently partnered with Oracle to enhance client data protection. Oracle recognized us as a success case in Latin America. While we are affiliated with the InsurTech Mexico Association, we consider ourselves “tech-enabled” because technology pervades every operational aspect, but it is complemented by our human talent. This dual approach — pairing technology with skilled personnel — is essential for meeting the demanding service levels the industry requires and the complexities that come with understanding insurance products.

Q: How does better data processing help the company in the decision-making process and risk evaluation of customer operations? 

A: In Mexico, insurance penetration remains relatively low, especially in cargo insurance. As a leading company in Mexico's insurance industry, we assume the responsibility of educating and informing the market about the necessity and benefits of cargo insurance. About 70% - 75% of cargo in Mexico is uninsured, which we actively aim to change through initiatives like publishing books on the topic, hosting monthly webinars with industry leaders, and conducting over 1,300 training sessions for our customers last year alone.

Our efforts focus not only on raising awareness but also on empowering clients, particularly SMEs, which often lack access to large brokers or insurers. SMEs are more vulnerable to losses from uninsured cargo incidents. Our product is designed to democratize access to cargo insurance, combining robust technology with superior customer service to ensure all businesses, regardless of size, can protect their shipments effectively. We prioritize educating clients on insurance products and ensuring they understand policy terms and conditions. This knowledge empowers them to effectively manage risks and leverage insurance coverage when needed.

Q: How do SafeLink’s Marine and Tracking divisions complement each other, and how does this synergy create value for customers? 

A: We operate two business units, SafeLink Marine and SafeLink Tracking, each serving distinct yet complementary roles. SafeLink Marine specializes in cargo insurance across all modes of transport — sea, air, land, and rail — as well as coverage for containers, and liability for logistics operators and customs agencies. This division provides flexible, trip-specific insurance that can be instantly issued through our technology platform, ensuring rapid and efficient service backed by our customer support.

SafeLink Tracking addresses the need for active monitoring and risk assessment throughout the supply chain. Beyond merely tracking GPS signals, our tracking service involves proactive monitoring protocols. This includes real-time monitoring of shipments, immediate response protocols for incidents such as route deviations or unauthorized stops, and liaising with authorities or drivers as necessary. Integrating our tracking service with our insurance platform allows customers to seamlessly secure both cargo insurance and active monitoring services, eliminating the need for separate providers and enhancing overall shipment security.

Q: What ESG strategies is SafeLink deploying?

A: SafeLink prioritizes social strategies as part of its corporate ethos. We have been recognized as a Socially Responsible Company for the past two years, and we also hold the distinction of being named among Mexico's Best Companies (Mejores Empresas Mexicanas) by Deloitte, CitiBanamex, and Tec de Monterrey — a recognition awarded to only 9 new companies last year. These accolades validate our commitment to following best practices in social responsibility and adhering to relevant standards.

While directly reducing our carbon footprint presents challenges because we are mainly a services company, we play a significant role in promoting sustainability by providing essential access to cargo insurance for SMEs that might otherwise struggle to obtain coverage. We also engage in various community initiatives that support local social causes.

Q: How has nearshoring impacted SafeLink’s performance and sales?

A: SafeLink recently received investment from foreign investors, including funds from the United States, Canada, and the European Union. This was for us a validation of the potential that Mexican companies have to solve big challenges that are key for the development of the country. Nearshoring has significantly impacted our performance and sales by driving growth in Mexico's foreign trade, which now accounts for nearly 90% of the GDP, up from 64% over the past decade. About 60%-65% of our clients are involved in foreign trade.

As nearshoring brings more businesses to Mexico, one of their top concerns is security. New companies need local providers capable of meeting their needs, and SafeLink is well-positioned to do so. We are a socially responsible company with quality certifications like ISO 9001 and recognition as one of Mexico's Best Companies. We are also members of key industry associations, such as the American Chamber of Commerce (AmCham), the National Council of Logistics and Supply Chain Executives (ConaLog), and the Mexican Association of Freight Agents (AMACARGA), which helps us stay connected with the market.

Our capabilities make us a reliable partner for foreign businesses setting up operations in Mexico. We understand the local market and can offer insurance products that meet their high standards and security concerns.

Q: What actions should the incoming administration take to help the industry grow? 

A: Our main expectation for the new administration is to address security issues, especially on highways. Transport operators and drivers in Mexico are demanding more safety measures due to the growing rate of increasingly violent thefts. Improving security will amplify the positive impact of nearshoring. Energy and infrastructure development is also crucial.

Q: What are SafeLink’s plans to harness the potential benefits of nearshoring? 

A: Our plans are to continue growing, with the goal of doubling our sales in the next two years. This growth will be driven by ongoing efforts to educate the market on the importance of cargo insurance, especially for SMEs. This initiative will be supported by our commitment to offering excellent products, technology, and customer service. We also plan to open two new offices in regions where we have no presence. The goal is to be closer to our clients. While we heavily use technology, we also believe in the importance of being physically available to our clients when needed.

We also aim to assist US-based logistics operators whose coverage ends at the Mexico-US border. We want them to see SafeLink as a reliable and institutional partner that understands the Mexican market and can extend their insurance coverage into Mexico. For example, to address specific customer needs, we developed a product for importers using the Manufacturing, Maquiladora and Export Services Industry Program (IMMEX), which caters to the unique requirements of temporary imports in Mexico. We continuously seek to identify and meet the needs of clients on both sides of the border, ensuring their cargo is insured throughout its journey.

SafeLink Group is a Mexican company that provides solutions for controlling and managing supply chain risks through technology. Its SafeLink Marine service deals with supply chain-related insurance, while SafeLink Tracking offers active shipment monitoring services.