Data-driven strategies that kept global trade moving

Economic uncertainty, an increase in armed conflicts and civil disturbances, set against a backdrop of the biggest election year in decades has created a dangerous cocktail of geopolitical conflict that poses great risk to an interconnected world that relies heavily on supply chains. 

Militant attacks and heightened tensions near the world’s busiest maritime waterways, including Houthi attacks on ships in and near the Red Sea, have resulted in the rerouting of shipping vessels to longer and safer alternative paths. These alternate routes are likely here to stay for the foreseeable future, with shipping giant Maersk expecting Houthi disruption to last until the end of this year. 

In addition to the threat of armed conflict, there have been several incidents of GPS interference recorded in the northern part of the Red Sea, as well as cases documented outside Jazan, Saudi Arabia and near the Yemen border within the Red Sea. According to our own data, we have identified Beirut-Rafic Al Hariri International airport in Lebanon as a common hotspot, with over 30,000 spoofing incidents this year affecting both maritime and aviation operations for our clients. 

However, despite this disruption, Insurers are making use of threat intelligence providers to get granular data insights and risk alerts tailored to specific routes, vessels and proximity settings to help with risk mitigation.

As geopolitical turmoil continues, the insurance industry must embrace technology as a vital ally. By enhancing risk assessment, streamlining data processing, and improving operational efficiency, technology not only supports insurers in navigating current uncertainties but also prepares them for future challenges. 

Such a rise in events often triggers one of two outcomes: insurers don’t have the information they need to provide cover, nor the basis to confidently underwrite it and must withdraw their cover or a combination of access to the best data sets and an innovative approach to underwriting allows them to maintain continuity of cover and pursue opportunities in the market.

In our journey to help provide this confidence to our clients, we partnered with Ambrey, the global leader in maritime security. By combining Ambrey's extensive experience in providing operational and digital maritime security services with Insurwave’s specialty insurance technology platform, risk managers, underwriters and exposure managers gain access to a comprehensive, global view of marine perils and risk. 

As part of this relationship, we helped our marine clients with alerts specific to their vessel routes to help them plan and react to events in real time and vessel affiliation checks to directly combat the militant groups now targeting shipping vessels based upon company trade and vessel affiliations.

In discussions with industry leaders on the current rise in conflict and its effects on the marine market, such as James Havard, Head of Exposure Management at Convex, I found that many share this view. As Havard explained, today’s world poses a significant challenge to the marine insurance market, with shifting conflicts creating ongoing events across the globe.  

However, technology platforms like Insurwave gave him the ability to be more closely aligned with his clients and derive meaningful insights from a consolidated data source complete with the latest threat intelligence, allowing Convex to take action quickly.

The challenging risk landscape and business environment over the past year has resulted in a number of firms looking to incorporate more additional layers of data to ensure their insights are as granular and comprehensive as possible. 

As a speciality insurance platform ourselves, we see the value in consolidating and correlating many different exposure data sets, an area in which we excel. One of the ways we have achieved this is by partnering with a large selection of different data providers across the market to integrate their functionalities into our platform. Be it Ambrey’s threat intelligence capabilities or Spire as our vessel tracking provider, we understand the value technology providers can bring in terms of additional detailed data points.  

For example, security and risk management firm Osprey Flight Solutions provides real-time alerts and detailed reports on emerging events affecting countries, airports and airspace to help aviation operators enhance their risk assessment and mitigation efforts. Most recently, the firm secured a deal with TUI Airline to utilise their insights.  

Similarly, ShipsDNA, a provider of maritime data and information, also offers a wide range of data related to vessels, ports, routes and maritime events that can further enhance insurer’s insights. In the dynamic and complex maritime industry, accurate and timely data is crucial for insurers to effectively assess risks associated with these areas, to not only help insurers with comprehensive insights into maritime activities, but also assist them with evaluating risks and optimising underwriting strategies. 

Ultimately, the value of this data extends well beyond operators to the underwriters taking on these risks. And as the complexity of managing risks, making decisions and tackling challenges in a world marked by rapid technological advances and increasingly interconnected risks grows, so too does the need for insurers to partner with technology providers that will look beyond fixing past issues for their clients and look to the present. 

Insurers looking to establish a competitive edge are now embracing innovative, data-driven underwriting approaches. Rather than sticking with legacy technologies, which often focus on outdated risk profiles and solutions, insurers of tomorrow are turning to advanced data analytics, real-time risk assessment tools, and AI-powered insights to make more informed decisions. 

As a technology provider, I find this evolution encouraging, as it demonstrates the value of converting raw data into actionable insights. This makes modern solutions not only relevant but essential in sustaining long-term success and, more importantly, the long-term fun functioning of essential shipping routes and ports across the world.