This articulate post by Martin Smith at Concirrus says nothing new. And that's why it's a big deal.
Why, still, do we need to write posts about this topic. Most of the technology and data Martin talks about is readily available now - and has been for some years - but why are we not seeing the evidence of people doing what he says?
Much like the ever-heralded end to this cycle of the soft marine market, the promise of data-driven marine risk selection appears to always be just over the horizon.
Return to marine insurance and you can start to imagine the type of advantage that this might give. In a world of syndicated risk, life starts to become pretty interesting. Competitors start to pay close attention to the risk that they’re underwriting, but with enhanced analytical power and by keeping their cards close to their chest, this insurer can start to call the shots. Maybe they’re able to develop closer relationships with customers. After all, with automated insight generation and connected policies, their decision making processes become more efficient and they’re able to offer more responsive, transparent services. Perhaps they shoulder more risk for certain vessels. Perhaps less, or even none at all, for others. Vessels of a specific age, tonnage or manufacture (or a combination of all three) might suddenly represent heightened risk and be avoided all together.