In coming years the marine and transport re/insurance sector stands to be rapidly transformed by blockchain and IoT technology, both in terms of the risks they underwrite and how they do so, creating new opportunities for re/insurers.
“IoT could also give insurers access to new data, such as station-keeping data for floating offshore platforms or data on ‘hogging and sagging’ of super tankers, which would enable insurers to monitor fatigue of vessels,” according to the Lloyd’s Market Association Viewpoint publication.
Although blockchain and IoT technologies are currently in the pilot stage within the marine and logistics sector, Lloyd’s stated that these lines of business are expected to be among the biggest adopters of IoT.
New initiatives to incorporate the technologies include a blockchain supply chain system, piloted by IBM and Maersk – it’s being used by Maersk to process 10 million containers this year.
Lloyd’s noted that Maersk is also working with EY on a cargo insurance blockchain solution that can capture marine data, such as information about risk and liability, as well as help rms comply with insurance regulations.
In the aviation sector, GE is developing micro-robots to carry out routine inspections of jet engines, a technology that they could also use for gas turbines.
The Lloyd’s Market believes the blockchain platform used by the marine and logistics industry could be used to link shippers, freight forwarders, financial institutions, ports and customs authorities, enabling them to share shipping data and documents, such as invoices, bills of lading or insurance certificates.
And the industry stands to be further transformed by the IoT, the Boston Consulting Group forecasts business to business investment in IoT will reach €250 billion by 2020, of which 50% will be driven by the transportation, logistics and utilities sectors.
The Lloyd’s Market Association Viewpoint recommends carriers start thinking ahead and identifying data they would find most relevant and who they might need to partner with in order to access it, although the application of blockchain and IoT technology is currently still in its infancy.