Is it possible for insurers, brokers and insureds in the War Risk market to be connected seamlessly, share data and insights in real time, and eliminate the administration burden that gets in our way – reducing costs and delivering a better experience? Technology is the connecting tissue that makes this possible, and it will improve outcomes for the whole market.
So how exactly can technology help? To take a practical example, when a tanker makes a voyage to a higher risk area, whether a war zone, a sanctioned area, or an area with heavy ice, we still today rely on a people information chain. The burden is on the crew and the risk manager to manually notify their insurance broker, who in turn manually arranges cover for that voyage – manually calculating any additional premium payable, confirming cover with underwriters, and very often manually creating the paperwork to confirm cover and invoice. With such a heavy administration burden, everyone has less time to focus on risk management.
Imagine the same risk, the same voyage, but supported by a connected insurance experience. Before the tanker crosses over in to the area of higher risk, the risk manager and the crew have already received an update on their preferred device with 1) confirmation of additional cover and premium for their voyage, and 2) risk management information related to their specific voyage, and actions they can take to proactively minimise risk. As the tanker completes that voyage, the additional premium is automatically debited from the insured, and monies are transferred to the broker and underwriters.
The insured, broker and underwriter(s) would be connected to the risk and the insurance on a shared platform, liberated from administration, and able to focus their attention to managing the risk of sailing in areas of higher risk.
If, for example, the vessel ended up in port for longer than the voyage schedule had planned, the cover and premium would be automatically updated. Confirmation of cover would be available to those who needed it at any time. If there was a particular uptake in dangerous activity or even an incident those approaching would be automatically notified to take extra precautions.
In all but the most volatile risk areas, risk managers and crew members would no longer need to provide manual notifications of voyage schedules, war zone entry and exits. Brokers would no longer need to perform complex manual premium calculations and create manual invoices. Underwriters would be connected to a live data feed of asset, exposure, policy, premium information and insights – such as the total value of additional premiums and claims against different types of vessels and war zone across the market – enabling them to form a deep understanding of the evolving risk.
All of this would mean that administration was drastically reduced, costs were lowered, and risk managers, brokers and insurers were freed up to spend more time on services that really add value. The end client would receive services and products better suited to their needs, and would receive what we all now expect: a great customer experience.
A connected insurance experience creates opportunity for everyone. For example:
For those willing to embrace technology, and the opportunities it brings, transformative value is within grasp. Several market leaders – ship owners, brokers and underwriters – have begun the journey of realising a connected insurance experience for War Risk. The question is to join the leaders or to watch from behind.
At Insurwave, our mission is to connect the specialty insurance market. We help insurers, brokers and insurance buyers create connected digital experiences, which eliminate administration, and create room for growth. If you’d like to find out more about how we could help you, sign up for a demo here.