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MARINE | Uuderwriting evolution In association with Cargocorp Underwriters
Antonia Martínez, Head of Operations at leading Latin American marine insurance MGA Cargocorp Underwriters, explains how the rise of new technologies and data is enabling a shift from gut based underwriting to a more accurate basis that will support further growth and innovation
After 24 years in the industry, Cargocorp Underwriters has been able to observe the relationship between information and a successful portfolio. It is easy to see that the insurance industry has come a long way and increased worldwide support to industries and clients. While it now heavily relies on real time data and complementing information, that has not always been the case. Back in the mid to late 1990’s, Cargo transportation risks, were accepted based on unsupported reputations. This would lead goods to be classified by personal experiences and testimonies without the proper backing to justify the information being spread. One large loss for an insurance entity could easily deem a certain good as non-preferred risks. The opposite can be true for risks that performed well.
HIGH VALUE CLAIMS
For example, if there were to be three large losses in Colombia during the transport of packaged snacks, such as potato chips, and these losses resulted in high valued claims there would possibly be a rise in premiums for these risks. The information of the claim value would be enough for the surrounding and regional insurers to act, compromising the market value of these transports. This would prove to be detrimental for the clients that would now face industry-wide increased deductibles as well as high premiums, often opting to go uninsured now leaving the insurers without premiums as well. Even without the proper cause of loss or the acknowledgment of possible risk mitigation, the market would be affected. Through time, it became obvious the industry needed a new objective, to find the factual information to prove or disprove the circulating communications. Various companies took the opportunity of emerging technologies to begin further analyzing risk.
INTEGRATED INFORMATION SYSTEMS
Cargocorp was one of those companies striving to integrate information systems to the marine insurance market. Using The Marine Insurer | March 2022
The rise of the rational underwriter
