Brokers and insurers in the marine market must keep pace with technological change as it is set to have a direct impact on the sector, an expert has said.
Matt O'Sullivan, head of marine, Australia & NZ and marine practice lead, Asia Pacific at
Zurich, said that whilst the marine market is well serviced by brokers, tech changes will have an impact.
“Advancements in technology are directly impacting how we move goods. This of course has a direct impact on the insurance of these products as new risks are emerging almost every day,” O’Sullivan told Insurance Business.
Search and compare insurance product listings for Cargo from specialty market providers here
“These developments will create greater risks for insurers, and provided we as an industry understand the new risks presented, it will give a greater opportunity for the insurance market to offer true risk solutions to our clients.”
The development of automated vessels is moving at pace as the industry is also impacted by other aspects of innovation in supply chains and storage.
With new technology on the horizon, client risks will change, presenting emerging risks that both insurers and brokers need to monitor.
“Brokers and insurers need to understand the changing landscape of their customers,” O’Sullivan continued.
“Brokers particularly need to understand where their customers’ risks currently are, and even more importantly, where their business is developing and any future risks.”
Cyber risk will play an increasingly important role in the marine market, O’Sullivan noted, but it is far from the only emerging risk in the sector.
For brokers, O’Sullivan advised that asking clients for the scenarios and risks that keep them up at night is a good way to begin further discussions around risk and also a way to provide them with a wider view of risk beyond insurance protection.
“We should always take the opportunity when we are face to face with our customers to get a better understanding of their business, and not just from an insurance point of view,” O’Sullivan said.
Related stories:
Cyber could have ‘catastrophic consequences’ in marine market
Underwriters pushing for increases in marine insurance market
.jpg)
