The global shipping industry is worth around US$14 trillion, yet it’s been slow to digitalise. Meanwhile, the rise of insurtech has begun to revolutionise consumer-facing claims management processes, but it has yet to make the transition to more traditional B2B sectors, such as the marine insurance market valued at around US$29 billion.
According to ShipIn Systems, the industry is facing a challenging 2023, with inflation driving up costs for repairs and breakdowns, geopolitical tensions, and new technologies contributing to increased risk and uncertainty.
Data from the Nordic Association of Marine Insurers shows that large-scale incidents costing millions of dollars to fix account for at least 30% of the value of total maritime-related claims.
However, insurers spend more resources on handling smaller, more frequent claims worth US$40,000 on average, a model that most insurers would be keen to move away from.
The advantages of using AI-powered solutions to increase the efficiency of claims management have been well documented over the years and with new specialised technology being introduced onto vessels, it has the power to do the same for shipping, says ShipIn Systems’ CEO and Founder, Osher Perry.
However, that an ingrained lack of trust and transparency is limiting the evolution of managing both risk and claims.
For insurers to benefit from receiving accurate evidence that is gathered in real-time, and for ship owners to be comfortable sharing a ‘warts and all’ account of incidents, there needs to be a significant cultural shift that puts mistrust to one side and focuses on shared goals of significantly de-risking operations, driving efficiencies, and mutually boosting commercial performance.
ShipIn Systems has developed a visual fleet management platform that utilises CCTV footage from ships, combined with AI-powered analytics, to gather near real-time visual data and intelligence for incident investigations.
This eliminates the need for witness testimony, allowing insurers to close claims faster and challenge the validity of claims, reducing the time and costs associated with the process, including the input of loss adjusters and lawyers.
by Yana Keller
