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MARINE | Real-time data In association with Concirrus
The influence of real-time data on active risk management cannot be understated.Understanding behaviour as it happens allows underwriters to have an ‘always on’ approach to risk management. Data can be interpreted as soon as it is received, providing an ongoing understanding of asset behaviour. This changes an insurer’s approach to policy structure, helping create new products that better serve the market. Sam Mellett, Senior Product Manager, Concirrus, explains Real-time data and improved visibility of insured assets enable the creation of products such as ‘connected policies,’ that follow a flexible structure based on supporting technology. Connected policies compliment the timely view of risk that dynamic data aggregation and analysis platforms provide. The information used in policy creation for marine accounts can be derived from various sources. The more accurate the data, the more appropriate the policy. At Concirrus, we aggregate vast proprietary and third-party datasets to monitor vessels globally. This data underpins our active risk management capability within Quest Marine, providing a simple solution to assess vessel activity. active risk management is important because it can improve loss prevention efforts and accelerate response times. Stakeholders can use Quest Marine to track the location and path of vessels, monitor accumulation within self-determined zones, identify specific port activity and set custom alerts.
NET LOSS REDUCTION Alerts and location monitoring form the backbone of connected policies. Alerts are automated based on predefined criteria and can be sent to those in other departments. This means a response can begin as soon as a breach in policy criteria occurs. Reacting quickly reduces net loss by ensuring adequate changes are made to the policy or behaviour during unforeseen activity. Sanctions, war and piracy zones are all strong examples of when alerts are used. New areas of risk can be defined ad hoc within Quest Marine as soon as they emerge. This ensures activity and accumulation can be assessed within selfspecified areas of interest. The Marine Insurer Claims Edition | September 2021
Real-time data as an enabler of active risk management If a vessel moves into an area of interest, its activity can cause an automated response to update its policy. Automation improves the delivery time of necessary changes, reducing inadequate cover and therefore exposure. Automated workflows also free up more time to manage client relationships, driving competitive advantage.
‘ALWAYS ON’ RISK MANAGEMENT Underwriting with the benefits of a big data analytics and insight platform offers a number of benefits. Using the same platform as brokers gives underwriters access to the same datasets and an equal view of risk. Understanding behaviour as it happens allows underwriters to have an ‘always on’ approach to risk management. Therefore, when negotiating business, underwriters are more informed before writing a policy and remain informed throughout the life of the policy. When deciding to write a piece of business or not, the conversation with brokers fundamentally changes. Real-time analysis ensures the visibility of behavioural trends over time, ensuring judgements are based on correlations over snapshots. This includes trends based on initiatives a broker may have regarding improvements to client risk profile. Policies can take shape around set initiatives. Automated updates can initiate new terms and conditions that align with agreed milestones. A new structure to policies can broaden the scope of what types of risk an underwriter is prepared to write.
