Victor Insurance is establishing a new hull insurance facility in London after hiring former RSA Luxembourg chief executive Richard Turner as its international head of marine.
Victor, an underwriting offshoot of US insurance broking giant Marsh, is not a familiar name in the marine insurance markets. It has been operating globally under different names in seven countries across North America, Europe and Australia, but recently unified the brand as Victor across the group.
Late last year, it hired Turner to help it get a marine insurance business off the ground as the next stage in its development.
Over the past few years, the hull market has been characterised by dozens of providers quitting the business because of poor profitability. So why has Victor decided to swim against the tide and go into a market so many have been keen to exit?
Turner said the company believes it can start from scratch to develop a profitable portfolio based on data and technology.
As marine insurance represents only around 2% of general insurance premium, he said it has naturally been one of the last places insurers have been looking to invest in digital technology. Turner now views that as an opportunity.
“I think with the growth in use of data, and the capability it brings, there are opportunities to reimagine the way reinsurance is effective in all areas; in the assessment of risk, the pricing and the product offered,” he said.
“Data is going to revolutionise the way that insurance works. If anything, marine has been slow in adopting the technology so far. That is not a criticism, it is just that there have been other areas to go at first.”
Historic underwriting data
Turner said Victor has already established the technology from which better ship-related and historic underwriting data can be used to price risk more accurately. The idea is to come up with a better assessment of shipowning companies and their individual vessels.
Victor is initially not aiming to be a lead carrier but a follower that takes small lines on syndicated hull insurance business. The marine business will operate in the London company market and will not get involved in its Lloyd’s of London operation, Victor Syndicate 2288.
In the longer term, Victor has ambitions to branch out into other marine-related lines of cover.
Turner is president of the International Union of Marine Insurance. He has often encouraged marine insurance providers to be more progressive in their use of data and digital technology.
“What we are doing is using much better data and combining it with underwriting experience to get to hopefully a really good outcome,” he said. “That last bit is what I am bringing to it.
“Victor have been doing many of the things I have been calling out for the industry to embrace, so it was a very straightforward decision to join them and great to have this opportunity. It is a really exciting project.”
