Innovation(!) in Marine Insurance

Norwegian Hull Club and its clients reap the benefits of reinvented inter-company business process, after launching its web based war platform.

Since deciding to become a viable alternative as a WAR Leader, Norwegian Hull Club has invested significantly in adapting our high end claims and service concept to a war product context. This development has been received well by both existing and new clients, leading to steady growth in the number of vessels insured.

In the wake of this growth came the realization that the business process on the underwriting side hadn’t really developed for decades, and that it contained great potential for improvement. This became even more apparent when the piracy situation in the Gulf of Aden, and later in the Indian Ocean, increased the number of trading breaches to several hundreds per annum. It was against this backdrop that Norwegian Hull Club decided to reinvent a crucial business process.

The old process saw six to 10 emails being produced each time a vessel performed a voyage to/through a High Risk Area (HRA). This correspondence needed to be filed by both involved parties (typically underwriter and broker), and the emails needed to be re-visited once closings and/or statements were being exchanged. The process was labor intensive, slow and expensive. It also entailed redundancy in terms of manual workload and data storage, which in turn created the need for cumbersome control regimes.

The solution, as we saw it, rested in a sensible application of web based information technology in order to move as much of the process as possible away from the exchange of e-mails and to reduce redundancy to an absolute minimum. By creating a database that is shared by the risk carrier and the client’s representative, the communication has been transferred to an online platform and the redundancy of both manual workload and data storage has successfully been reduced to a minimum.

The first fleet went online 1st May 2014, and based on the number of fleets subsequently added to the platform it can already be labelled as a success. The platform offers unprecedented availability, and less time is spent confirming pre-agreed terms, filing correspondence and controlling the final outcome / financial transaction. Fewer manual steps leave less room for error and working on the same data reduces the potential for misunderstandings.

If you are interested to learn more about how this platform can be utilized by your organization, please feel free to contact your underwriter.

7. Apr. 2015