Concirrus, the internet of things data company, has hired Dieter Berg as a non-executive director to help it promote the use of analytics in the marine insurance industry.
Berg is a high-profile figure in the sector. He was a senior executive manager at one of shipping’s largest reinsurers, Munich Re, and president of the International Union of Marine Insurance (IUMI) until he stepped down last year.
Data pioneer
At the IUMI, Berg supported the adoption of internet technology and at Munich Re, he was tasked with developing technology innovation.
This week, he told TradeWinds that he is keen to carry on in the same line of work at Concirrus.
“I am really excited to continue the work I was doing last year at Munich Re on innovation and help Concirrus explain what they do and to be part of the development," he said. "It is time for all insurers to develop a digital strategy.”
Berg believes the technology that Concirrus offers can help turn around losses in the hull insurance business, which, according to the IUMI, have been running for 18 years.
It is time for all insurers to develop a digital strategy
Dieter Berg
Concirrus recently won the business of Marsh, the world’s largest marine broker, as well as hull underwriters such as Acorn, Antares and TransRe.
Blockchain initiative
The company has also been helping accountancy firm EY, which is working on a blockchain initiative with Maersk Line.
Its main marine product is Quest Marine, which uses live and historical data to come up with risk ratings and a pre-claims service that attempts to predict when an accident might occur.
However, many insurers still remain to be convinced about the benefits of such technology. They point out that historical claims performance is still the main tool in determining risk and pricing in the marine industry.
Concirrus chief executive Andrew Yeoman conceded that there are still many “cynics” in the market, but claimed the company is winning them over with technology that can boost profitability through informed risk analysis and efficiency gains.
Effective market
“What strikes me about the marine insurance market is how well it works, it is an incredibly effective market,” he said. “So when we look at digitalisation, it is not about making the market work. It already does that. It is about making it more efficient.”
Yeoman claimed that the company can demonstrate “double-digit” improvements in loss ratios as a result of using its product.
