For years, the freight industry has lived with a quiet contradiction.

On one hand, supply chains are more digitized, data-rich, and interconnected than ever. Transportation management systems (TMSs) sit at the center of daily execution, orchestrating carrier onboarding, shipment visibility, documentation, and financial workflows.

On the other hand, cargo insurance (arguably one of the most critical risk controls in freight) often lives outside that core workflow. Coverage is purchased separately, documentation is scattered across inboxes and portals, and claims processes are disconnected from the shipment data that underpins them.

The result is underinsurance, not just inefficiency.

The underinsurance problem isn’t theoretical and isn’t marginal

Industry estimates suggest that roughly 60 percent of global freight moves uninsured or underinsured, even as cargo values rise and loss drivers become more complex—from organized theft and climate-driven weather events to port congestion and geopolitical disruption.

In many organizations, this gap stems less from deliberate risk decisions and more from operational reality. When insurance is slow to purchase, fragmented across systems, or disconnected from day-to-day workflows, protection becomes inconsistent by default. Under constant time pressure, brokers and shippers managing hundreds or thousands of loads are more likely to skip coverage, defer decisions, or assume someone else has addressed the risk.

The industry’s opportunity is to reduce friction so consistently that protecting freight becomes a routine part of execution rather than an exception.

Why TMSs are the natural home for cargo coverage

TMS platforms already serve as the operational source of truth for freight. They house shipment details, carrier data, routing, values, documentation, and timestamps—precisely the inputs needed to assess cargo risk and attach coverage appropriately.

Embedding cargo insurance purchasing and claims management directly into TMS workflows addresses several long-standing pain points at once:

• Seamless risk management inside the workflow
  Embedded insurance eliminates the handoff to separate systems and manual steps, enabling faster quote-to-coverage turnaround and reducing administrative overhead.
• Instant access to insurance documentation
  Certificates of insurance can be viewed right on the shipment record, alongside freight documentation including supporting compliance, audits, and customer inquiries without hunting through emails or portals.
• Transparency and control at shipment level
  Shippers and brokers gain real-time visibility into coverage status alongside shipment data, making it easier to confirm which loads are protected across a network.
• Reduced claims complexity
  When a loss occurs, integrated shipment documentation and tracking data streamlines claims intake and supporting evidence—often accelerating resolution timelines.
• Flexible coverage options that scale
  Embedded access supports tailored protection that can match evolving needs, e.g., high-value freight, seasonal spikes, specialized cargo, or unique operational requirements.This is less about adding another tool and more about removing operational barriers to consistent protection.

From documentation chaos to operational clarity

One of the most tangible benefits of embedded insurance is documentation visibility.

When certificates, coverage status, and shipment records live in separate systems, teams lose time reconciling information, recreating records, and tracking down attachments. Those inefficiencies show up in audits, customer conversations, and especially during claims—when speed and accuracy matter most.

When insurance is embedded directly into the TMS, coverage documentation becomes part of the shipment record and stays connected to the same data used to execute freight. That reduces confusion and makes the “source of truth” genuinely singular.

A broader industry shift toward embedded risk management

This evolution mirrors what’s already happened in other parts of logistics technology. Payments, compliance tools, and visibility have steadily moved from standalone solutions into embedded, workflow-native experiences.

Cargo insurance is following the same trajectory for a simple reason: it aligns risk management with how freight is actually managed today.

As Jon Curtis, Lead Product Manager of Corsair TMS at Rygen, put it “By integrating with Loadsure and embedding cargo insurance directly into the shipping workflow, we’re meeting users where they already work. They get comprehensive coverage options at the point of shipment and in their system of record. This eliminates the friction and need to leave the platform for their insurance needs and reduces the risk exposure that comes with delayed or overlooked protection.”

That perspective reflects a broader expectation among brokers and shippers: if a function is essential, it should live where the work happens.

Technology as a signal, not just a convenience

There’s also a signaling effect at play.

When insurance is embedded in a TMS, it becomes visible, trackable, and deliberate rather than assumed. That matters in a market where cargo theft and loss are increasingly sophisticated—and where customers and stakeholders want stronger evidence that freight risk is being actively managed.

Michael Kennedy, VP of Global Partnerships at Loadsure, points to this behavioral impact as a key benefit of embedding protection: “When coverage is integrated directly into the shipment workflow, it removes friction and helps make protecting freight the default—not the exception.”

Building a more resilient freight ecosystem

Ultimately, embedding cargo insurance into TMS platforms isn’t about a single partnership. It’s about modernizing how the freight industry manages exposure in an environment where loss drivers are rising and operational complexity is the norm.

When insurance lives where freight lives—inside the systems that power execution—it becomes part of the flow, not a break in it. And that shift may be one of the most practical steps the industry can take toward closing the underinsurance gap and building more resilient global supply chains.