Protection and indemnity insurers are starting to develop business models to support loss prevention and underwriting activities based on digital technology, known as insurtech.
Last year, Skuld signed up with software developer Concirrus to use its digital P&I platform, Quest Marine, which employs predictive risk-modelling to inform underwriters and actuaries. In January, North P&I Club followed suit.
North P&I loss prevention director Colin Gillespie said: “The activities of the club’s loss prevention department contribute significantly to the understanding of our members’ operations, and these will be augmented by leveraging the latest machine learning techniques and behaviour-based data analytics."
So far, insurtech products have mainly been associated with the commoditised hull and machinery market, but they have wider applications.
Concirrus chief operating officer Nick Roscoe said clubs are taking on Quest with underwriting in mind, but have started by using it as a loss prevention tool and in sanctions compliance.
The platform also offers P&I digital pricing capability, which crunches marine and client data that correlate most closely to related risks.
The Swedish Club began its own digital journey last year through a tie-up with an unnamed supplier, while the UK P&I Club is actively engaged with the UK Chamber of Shipping, which launched its digital accident-analysis tool, HiLo, in 2018.
Loss prevention
The Swedish Club is running a HiLo trial, in which ships are automatically sent loss prevention warnings specific to the areas where they are trading.
Lars A Malm, director of strategic business development and client relations, said: “As soon as one of the ships in the trial is flagged as sailing for a destination identified as high risk, we can send them tailor-made loss-prevention advice based on where they are going, the type of vessel they are operating, and the cargo [they are carrying].”
