Marine cargo insurance - digitalisation

Complexities in marine cargo

There are a number of complexities within the cargo market that need to be considered when digitalising insurance in this line of business. Complexities include:

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Legacy infrastructure

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Siloed data and knowledge

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Volatile supply chains

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Lack of segmentation of risk

This guide to digitalisation in the marine cargo market explores a new approach that will allow practitioners to increase efficiency, improve profitability and develop new products and services.

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A new approach to cargo risk placement

Whilst the transition to a new risk model takes time below are the high-level steps needed to achieve a new risk placement model for the cargo market:

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 Step 1: Adopt a digital platform 

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Step 2: Incorporate third party risk data 

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Step 3: Develop a new view of risk 

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Step 4: Implement increased levels of automation 

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Step 5: Use your new intelligence to create new products and services

Profitability optimisation in marine cargo insurance

Digitalisation offers the ability to simulate underwriting decisions through deductible matching. The feature allows users to:

 

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evaluate changes to deductibles on overall portfolio performance

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model changes to deductibles on specific commodities

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inform renewal discussions on commodities and accounts

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improve risk selection and pricing of new business

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Loadsure's approach to cargo insurance

Loadsure integrates Concirrus’ Quest Marine Cargo platform into its offering to draw on a wealth of insights and automate outcomes. It specifically allows for sustainable and profitable underwriting in real-time. Such technological advancements are being embraced by Lloyd's, with Loadsure becoming part of the Lloyd's Lab 2020 cohort. 

“Cargo is complex, both in its use of a traditional placement model and its associated exposures. We leverage innovation alongside partners, such as Concirrus, to create a proposition that reinvents and simplifies transactional placement, driving value for all parties.” – Johnny McCord, CEO, Loadsure. 

Cargo transit exposure example

Utilising Quest Marine Cargo, we can better understand the overall view of sea-based trade going in and out of the United States for a corporate manufacturer of consumer goods. It gives rise to new levels of exposure which are not typical using typical methods. Variables explored include route, port, country, shipment, commodity, and company exposure.  

Click the link below to access the case study.

Cargo transit exposure

Conclusion

An opportunity to create a new digital cargo insurance model

The collective impact of data-driven features within a shared digital platform could transform the way marine cargo insurance operates.
The rate of change in the next few years will be significant.

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Digitise your book and gain visibility of dynamic exposure.

Quest Marine Cargo gives Underwriters and Brokers access to a wealth of intelligence associated with ever-changing risk throughout the cargo journey. Richer insight improves segmentation, prospecting and underwriting within each cargo segment.

 

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