Soaring food costs and double-digit inflation! The price of raw materials continues to fluctuate and supply chain pressures pose a significant risk to the bottom line of companies. We’ve seen this passed on to the end customer and impact people’s everyday lives, an example of this is the price of bread increasing by a whopping 20% for the year ending September 2022 – that bread is rising too fast!*
ChAI was born out of the realisation that existing analysis and hedging tools, including futures and options, offered by the capital markets are complex and only accessible by large corporates (typically with dedicated trading teams). Combined with increased geopolitical and climate-related unpredictability, the majority of companies are left exposed to commodity price inflation and volatility.
ChAI has built an advanced risk management platform enabling companies to confidently forecast commodity prices up to a year ahead, understand the factors driving them, and manage their commodity price exposure risk. Utilising the latest AI and machine learning, ChAI analyses thousands of traditional and alternative data sets daily, enabling companies of all sizes to determine the optimal time and amount for hedging decisions – with applications to metals, plastics, and agricultural products.
But where things get really interesting is that ChAI are building an embedded parametric insurance product, which when combined with their market intelligence platform, provides customers with a tailored and integrated solution to de-risk their supply chains.
Tristan and the team have continually impressed us with their deep domain experience across finance, commodities and academia. They’ve utilised their 50+ years of combined insights to build an impressive risk management platform already used by big customers – it does help that the team has worked together before!
We’re extremely excited to partner with the ChAI team on the next stage of their growth journey, and are confident in their ability to utilise insurance to build more resilient global supply chains.
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Reference: ONS: Ave price – Bread