To say this has been a unique year is putting it mildly. I have no doubt that 2020 will be forever etched in our minds.
Covid-19 has certainly accelerated changes that will have a profound effect on the way the industry operates in the future.
After a year like no other, TradeWinds asked 40 shipping industry stakeholders what they see for 2021 after a year beset by the coronavirus, and how the pandemic will shape shipping's future.
Being a technology-based business, the move to remote working was not such a significant leap. What was challenging was the lack of face-to-face interaction. We value being "in the market", meeting customers, attending events, and being part of the City. Our business thrives on this "market osmosis".
That said, we have fared well, with an incredibly strong culture that we have worked hard to maintain through the year. Our people’s mental health and well-being became a key focus and instilling a sense of calm and stability at a time when there was so much uncertainty was crucial.
Thinking about our business, has our direction of travel changed? I would say no, but the pace of change has increased. For 2021, we are focused on our international growth plans and diversifying our product offering.
For the wider marine insurance industry, this crisis has brought about some fundamental changes, with businesses now grappling with the concept of being a digital insurer.
They are asking: What does this actually mean? How will it work in practice? What do we need to do to differentiate and how will it affect our people? These are all valid questions that need to be answered as a matter of urgency.
Embracing digital future
The digital version of the insurance market is just getting started as we enter a decade-long investment cycle in data and analytics. Even Lloyd’s of London — a last bastion of face-to-face interaction — is embracing this digital future in its latest Blueprint. However, the true test of this investment won’t be the technology, but the business models that it enables.
Our first insight into this digital future came this year with the successful initial public offering of Lemonade and the $500m investment into Ki Insurance. We are witnessing the birth of algorithmic-powered insurance — and much of what has happened to the trading of equities in the financial markets will surely come to the insurance market.
This year was the “end of the beginning” of this digital cycle — kick-started in a way that we could never have planned or imagined. This has given rise to a more hybrid approach, where digital technologies and new operating models are being embraced.
The challenge for 2021 will be centred on the incumbent players and how they respond and adapt. Or, will they cede the opportunity, igniting a new breed of technology-fuelled market entrants?
