EY has announced that it will collaborate with InsurTech company Concirrus to support the adoption of behavioural-based underwriting and risk management in marine insurance, using artificial intelligence (AI) powered software.
The partnership is intended to help modernise the marine sector’s traditional demographic based underwriting models, which rely on data like the age, size and flag of a vessel, and which are under increasing pressure to underwrite risks better and faster.
Concirrus has developed AI-driven software that utilises new sensor, machine and analytical capabilities, which can help re/insurers better understand their exposures and control claims.
Harnessing these technologies at scale, the partnership will allow marine re/insurers to better manage their risk portfolio and develop more accurate underwriting models by utilising behaviour analysis and considering factors like a vessel’s speed and location.
Chris Payne, Head of Insurance Technology, Europe, Middle East, India & Africa (EMEIA) at EY, said: “Driving innovation within the specialty insurance market is something we are very focused on. The unique toolsets and data that Concirrus has access to will drive new insights in the marine insurance industry, and we are thrilled to be working together.
“Leveraging EY’s insurance knowledge and longstanding relationships in the industry, and Concirrus’ unique combination of data and proprietary technology, we can help insurers, brokers and Protection and indemnity insurance clubs enter a new world of marine insurance.”
Andy Yeoman, Chief Executive Officer (CEO) of Concirrus, also commented: “EY’s domain knowledge and expertise at scaling technology will be a great addition to our software. We can’t wait to collaborate with EY to help accelerate our work with some of the biggest global insurers in the market.
“Through our analytics work with leading London and Global insurers, we have proven that behavioural data is a better indicator of risk than traditional demographics. With every customer, we’ve delivered insights and new rating factors that simply did not exist before.
“This new way of working presents exciting opportunities for marine insurance underwriters to manage the loss ratios of their risk pools, and accurately price new business without claims history.”