Insurwave & Teekay:
success Story

About Teekay

The Challenge

Teekay’s risk managers have to track over a hundred ships around the world. The Joint War Committee defines standard war zones but many risk managers agree insurance terms for their own defined zones, ports and terminals.

Teekay operates its vessels on a charter basis. The insurance cost based on the charterer usage can be charged back to the charterer. However, a ship owner must get its advice (invoice) for the insurance out to the charterer within a defined time period.

Before adopting Insurwave, the ship’s captain would email Teekay’s risk management team, who would email the insurance broker, who would then be updated about the beginning, middle and end of each voyage for every ship. The insurance broker may have had to calculate premiums manually, interpret emails about vessel location and refer to the slip for valuation and calculation terms.

The insurance broker may also have had to endorse a policy via email or phone, or even in person, while trying to produce the invoice within the specified time period. Then they would have to go back to the insurers to receive authorisation.

All this was costly, slow and led to inaccurate reporting: you don’t really have the data you need to know your live exposures, and most importantly, to know that you’re covered when things go wrong.

The Challenge​

Teekay’s risk managers have to track 100 ships around the world. The Joint War Committee defines standard war zones but many risk managers agree insurance terms for their own defined zones, ports and terminals.

Teekay operates its vessels on a charter basis. The insurance cost based on the charterer usage can be charged back to the charterer. However, a ship owner must get its advice (invoice) for the insurance out to the charterer within a defined time period.

Before adopting Insurwave, the ship’s captain would email Teekay’s risk management team, who would email the broker, who would then be updated about the beginning, middle and end of each voyage for every ship. The broker may have had to calculate premiums manually, interpret emails about vessel location and refer to the slip for valuation and calculation terms.

The broker may also have had to endorse a policy via email or phone, or even in person, while trying to produce the invoice within the specified time period. Then they would have to go back to the insurers to receive authorisation.

All this was costly, slow and led to inaccurate reporting: you don’t really have the data you need to know your live exposures, and most importantly, that you’re covered when things go wrong.

The Solution

Insurwave offers a connected experience that makes it better and cheaper for everyone, eliminating administration, and unlocking the power of real time risk data.

DIGITISE

Insurwave digitised contract terms with Teekay, the broker and the insurer, codifying what is charged in each war zone depending on how long the vessel is there and which ports it visits. Insurwave digitised Teekay’s fleet, connecting digital records of each vessel with real time risk and location information from the Internet of Things.

This image shows orange and blue data points next to and on top of the Insurwave platform.

CONNECT

Insurwave connected Teekay with its insurance broker digitally, giving both parties access to the data they need – via automated email notifications or on the platform itself. Everyone has the same live information, meaning reconciliations are a thing of the past.

AUTOMATE

The platform is automatically triggered when Teekay’s vessel is entering and leaving a war zone, resulting in algorithmic premium calculation, document and invoice production and notification.

The Benefits

Insurwave provides a connected digital experience to ship owners, brokers and (re)insurers. Through facilitating insurance on a single, shared platform, much of the admin – and associated errors – are eliminated. Most importantly, cover certainty is ensured for everyone, and that is underpinned by live, auditable risk and exposure data everyone can rely on.

Benefits for the insurance buyer

No need to manually track vessels

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No need to manually track vessels

Teekay no longer has to manually report the positions of all its vessels. It gets an aggregated real-time view of all activity on its account in one place.

Significantly reduced workload

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Significantly reduced workload

Information is immediately accessible on platform, so no one has to call or email to provide it. This leaves the ship’s captain free to carry out important operational tasks and the risk management team can spend more time focusing on proactive risk management rather than dealing with reactive mitigations.

Invoice delivered to charterer without insurance delays

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Invoice delivered to charterer without insurance delays

Insurwave provides Teekay with its advice and premium invoice at the point that the vessel completes the part of its voyage which crosses war zones. This means Teekay are able to pass on insurance costs to the charterer faster.

Benefits for the broker

Reduction in administration effort

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Reduction in administration effort

Brokers no longer need to manually record risk event data, calculate premiums and produce advice notes and invoices.

Reduction in processing errors

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Significant reduction in processing errors

through automated data tracking, and algorithmic premium calculation and processing.

Elimination of reconciliation activities

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Elimination of reconciliation activities

No month-long period of renewing at the end of the policy, looking back at the previous policy period and collating emails. Now information percolates through to the end client and their insurers real time. And they all work off a single, auditable version of the data that they can trust.

Offer clients a connected digital experience

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Ability to offer clients a connected digital experience

Brokers that are able to go beyond risk transfer administration, to a connected risk management + risk transfer experience, are going to improve retention and new business win rates.

Benefits for the insurer

Live (and historic) risk behaviour and exposure data

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Live (and historic) risk behaviour and exposure data

No more will insurers need to refer back to unwieldy excel reports provided periodically to understand their exposures, or to assess a live loss scenario. Instead, they have access to a live ledger of vessel, location and exposure information, with the context of what has happened before.

Proactive risk alerts to highlight cover gaps and leakage

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Proactive risk alerts to highlight cover gaps and leakage

Rules based monitoring means insurers know, without having to ask, when a client risk may be approaching or going beyond the limits of cover, allowing them to proactively offer additional cover. This ensures cover and premiums are in synch, the end client has the cover they want, and the insurer is compensated accordingly. Where insurers want to provide risk management advice, they are able to automatically deploy their expertise based on monitoring live risk behaviour.

Connected, digital experience with brokers, clients and reinsurers

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Connected, digital experience with brokers, clients and reinsurers

with information shared once on platform, manual information sharing is all but eliminated. This brings the insurer closer to those it wants to be closer to, whether that is reinsurers, brokers or indeed, insurance buyers.
Insurwave works - we're never going back to pen and paper!
This image shows Christian Ott.
Christian Ott
Director of Insurance, Teekay Corporation

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