Schiffstechnik | Ship Technology Big Data arrives in marine insurance Vessel performance data is already being used to optimize efficiency on ship and fleet level. In a new approach, other stakeholders are also getting access to real-time behavioral data to include it in their processes Performance data is made available via mobile solutions Wärtsilä subsidiary Eniram has launched Eniram SkyLight 3.0 for fleet performance monitoring and is partnering with Concirrus to deliver new solutions for marine insurance underwriting based on accurate operational data. Concirrus offers an AI-powered insurance software platform that uses real-time behavioral data instead of demographics as an indicator of risk. SkyLight 3.0 is an update to Eniram’s subscription-based fleet performance monitoring service. It now includes mobile notifications and virtual propeller RPM sensing. Satu Lipponen, Head of Commercial Portfolio, Eniram, explains that the stand-alone Eniram Sky- Light Transponder is installed on board where it collects data such as location (GPS) and the vessel’s motions. This data is sent to the cloud for further processing using a built-in satellite connection. Additional data is collected from noon reports and route files delivered by the officers on board. All this data is combined with other data sources like global weather forecasts. Skylight acts as a fuel performance monitoring solution for vessel owners, operators, or charterers, but is also designed to enable new data-driven business development opportunities across the marine sector, including flexible insurance solutions, maintenance monitoring, and vessel performance monitoring services. The partnership with Concirrus will see navigation and situational data integrated into Concirrus’ marine insurance underwriters’ application Quest. It enables insurers to manage their risks in real time, attaining operating efficiencies and insights that are otherwise impossible to achieve. Accurate, real-time operational data will be used to provide a transparent and shared view of risk, with tailored insurance that allows customers to pay only for what they need. The concept of a connected policy in insurance exists in other insurance lines already. »The closest comparison to what we are doing with Eniram and Concirrus would be commercial vehicle insurance where connected policies have existed for some time using telematics technology installed on the vehicles,« Graham Libaert, Product Director at Source: Eniram Concirrus, tells HANSA. Concirrus have been working in the »Internet of Things« space since 2012 were approached by a marine insurer to explore ways to apply their thinking in the marine insurance market. »With the marine industry having long ago adopted technology, Concirrus could see that there was tonnes of data from marine operators that would be very useful for insurers,« Libaert says. No »over-« or »under-insurance« Traditionally marine insurance policies have been underwritten using demographic factors such as vessel age, flag, dwt, operator, owner etc. Historic claims experience is likely to also be factored into the premium. This could also be done with the observed situational and behavioral experience into the model, by looking at things such as historical movement and location for an individual or fleet of vessels. This permits a more accurate representation of risk. From here the insurer can offer more appropriate cover so that the owner isn’t under or over insured. »Concirrus have already proven that these factors can improve existing models and are in fact a better predictor of loss than a number of the demographic ratings used today. The availability and robustness of Enirams Skylight navigational data takes the clarity and management of risk to the next level«, Libaert says. He gives examples of how different types of location and movement data can be used to tailor insurance policies: • l Geographic: Existing insurance policies may include geographic limitations, however they are often generalized across an entire fleet which means marine operators may be paying for insurance that they don’t need. With access to historic and real-time geographic data, an insurer could offer a new connected policy with geographic inclusions that are directly tailored to that ma- 62 HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 4
Schiffstechnik | Ship Technology rine operator and their different vessel classes, some of which may not need worldwide insurance cover. Insurers will be able to monitor this information in real-time, with visibility of when a policy might be breached and communicate with that operator to suggest a different route, as well as reward fleets that operate in lower risk areas. • l War zone: Some fleets require cover for war and piracy on an infrequent basis. The technology partnership presents the opportunity for insurers to offer a connected insurance policy where the premium is adjusted for War and Piracy cover when it’s needed. Existing AIS technology is often turned off when navigating in areas affected by war and piracy to protect the vessel and crew, however ships using the Eniram Skylight 3.0 technology can continue to share their location with their insurer to receive a premium that is reflective of their movements. • l Voyage: Hull cover is currently written on a time basis. With the availability of routing information directly from the vessel or from shore-side operations, it is now feasible to underwrite an individual voyage. Notably, this could apply to the last voyage of a vessel before breaking, or for other particularly high risk voyages where deviation from the route is considered high risk. • l Machinery data: Machinery and equipment failures account for 50% of hull and machinery claims and 31% of the cost to insurers. Machinery and maintenance data could be used by insurers to proactively communicate with vessel operators about the state of their machinery. It could also be used to reward those operators who regularly maintain their machinery with lower premiums. »Shipowners are able to empirically demonstrate the robustness of their risk management procedures and, in sharing this with their insurer, they are able to initiate a data-driven conversation enabled through Concirrus’ platform Quest Marine that permits a more transparent, fairer and tailored insurance premium,« says Libaert. Positive feedback According to Eniram, the feedback from the industry so far has been quite positive, as owners could see the mutual benefits obtained by having a shared view of risk with their insurer. »These new connected policies are optional, so owners can stay with a traditional policy if they choose to. Making the same information visible and transparent between the insured and the insurer removes subjectiveness and promotes proactive management of risk by the operator,« says Libaert adding that Concirrus is speaking with all of the large marine insurers in the Lloyd’s and London market. The company is working on a number of proof-of-concepts and will soon be able to make announcements about new customers. They have also teamed up with EY to accelerate adoption of the technology. fs HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 4 63
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