Automation in marine insurance is developing beyond underwriting and into the area of cargo claims settlement.

And a new digitised claims system launched by a London-based start-up is promising to bring more efficient settlement and to reduce the need for surveyors or loss adjusters.

Optimiz was started by chief executive Kingsly Kwalar to provide a claims solution for containerised perishables. It has a host of backers, including insurance technology development platform Lloyd's Lab.

His product is an automated cargo claims platform that directly links the shipper and its insurer with the shipping line when a claim occurs.

The system directs the parties through the claims system and uses a mobile evidence collector. Optimiz reduces documentation and the risk of misrepresentation of damage. Finally, an optimum settlement figure is offered through a predictive algorithm.

Kwalar said the system has been trialled with one of the top four shipping lines, without disclosing which one, and a number of larger shippers.

Cost savings

He believes the system has the potential to recover some of the 15% to 30% of costs that are lost in the claims settlement process. Kwalar pointed out that, at times, claims costs can actually exceed settlement amounts.

“There are different entities who perform the different functions our solutions provide, such as surveyors, recovery agents and loss adjusters," he explained.

"We believe that by combining and automating these functions in our solution and focusing on low value, high volume, non-complex containerised cargo claims, we help the industry reallocate its valuable resources to more meaningful work, but also make quicker informed decisions using our analytics,” Kwalar said.

He believes the system can be developed into other shipped cargo types to make the claims process more efficient. Kwalar is keen to work with other partners to continue to progress automation in claims settlement.

Singular goal

In the future, he predicts that internet of things (IOT) technology will be used to settle claims, even when goods are in transit.

He can see a time when “a trigger from an IOT device confirming temperature variation outside predetermined boundaries results in automatic payout under the insurance contract, which in turn triggers the subrogation recovery process using our solution,” he said.

Such systems have plenty of potential and Kwalar is encouraging underwriters to work with him to continue to develop the system.

“Our singular goal at Optimiz is to use technology to fix frictions within the cargo transportation and insurance industries.

"We recognise that there is still work to be done and that is why we encourage risk carriers to work with start-ups and other innovators to help bring the change we all desire.”