Lloyd’s is working in partnership with several marine insurers to test the business impact of implementing a new smart data analytics platform for managing an insured vessel fleet.
Reactions understands from several sources that Antares, Atrium, Talbot and Tokio Marine Kiln are involved in this Lloyd’s project.
The digital innovation scheme envisages underwriters and their insureds being able to use a live information source to ensure that vessels circumvent risky waters when they can, including conflict zones, or areas prone to piracy or extreme weather.
The system’s data could also be used by marine hull and machinery underwriters to inform underwriting decisions, improve risk profiling, and assist with claims.
In June, speaking at a Verisk insurance data conference, Craig Civil, head of data innovation at Lloyd’s, gave the first indication that marine underwriting was a digital innovation priority.
He said Lloyd’s was looking into making use of vessels’ regular satellite Automatic Identification System (AIS) transmissions to provide risk insight based on ships’ behaviour.
Such smart analytics platforms work by using available data, such as AIS transmissions. Then comes the modelling aspect, using machine learning, otherwise known as artificial intelligence, to identify behaviours, detect patterns and ships behaving unusually, to produce risk assessments and warnings.
“We’ve had a lot of market interest in this new data analytics approach to analysing vessel navigational behaviour,” Civil told Reactions.
“There is a vast amount of real time data being processed but the key is to unlock the business value for the market that a smart data analytics platform can provide and that is what we are evaluating right now with our market colleagues,” Civil added.
This story is developed within an in-depth feature on the topic of marine risk analysis in September's Reactions magazine, published shortly.