IUMI 2017 Preview

Technology Takes Center Stage in Tokyo

IUMI’s annual meeting in September will offer a rare glimpse into local markets.
By: | August 30, 2017 • 4 min read
Topics: Marine | Underwriting

The official theme of the International Union of Maritime Insurers (IUMI) annual meeting in Tokyo September 16-21 is “Disruptive Times – Opportunity or Threat for Marine Insurers?” and one key focus will be on technology issues, including cyber threats and Big Data. But the conference will also be an opportunity to see the Japanese market from the inside, a perspective that few international underwriters and brokers have.

Lars Lange, secretary general, IUMI

“In the Tokyo market there are not many foreign insurers,” said Lars Lange, secretary general for IUMI, “but Japanese insurers are very active in the rest of the world. There was a concern after the massive Fukushima earthquake in 2011, everyone expected massive losses. But that is not a problem though; the national market in Japan is fairly balanced. They write and cover it locally.”

In terms of cargo premium, Japan is the second or third largest market in the world, Lange noted. Underwriters seeking to enter the market would do well to consider their core competency. “Is it coverage and claims, is it technology, is it distribution?” Lange asked.

“Insurers have to deal with their own business first, and then extend that to their customers,” he continued. “It is especially the case in marine insurance what clients need from us is risk assessment, loss prevention, and identification of emerging threats. Every company struggles with cyber threats. This is an area where we can do a great service to our clients.”

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There is still a lot of ground to cover, even for the bigger companies, in areas like the Internet of Things and Big Data. There is a lot to be learned,” Lange said. “Once ways of addressing that are put in place, then that can be recognized in the premiums. The more precise your knowledge of risk the better you are able to allocate capacity at the appropriate price.”

Lange related an instance of how technology is changing both the operational realities of the maritime industry, and also the way operators and underwriters are responding to risks.

“I spoke to the chief executive officer of a major classification company, and he told me that one operator acquired a 3D printer and a supply of metal powder to provide spare parts aboard a ship.”

How well that will work in the rigors of shipboard operations, and if it lowers repair costs or boosts efficiency remain to be seen. But Lange sees an inevitable trend. “It is not unlikely that developments like this will only accelerate.”

 “It is especially the case in marine insurance what clients need from us is risk assessment, loss prevention, and identification of emerging threats.” — Lars Lange, secretary general, IUMI

The conference starts with members-only committee meetings on Sunday. They are not open to general attendees, but Lange said he does not expect there to be any major or contentious issues discussed. The first-timers’ reception and welcome reception that evening are open to all.

On Monday morning is the president’s address to the plenary session, a state of the union report to all delegates and the industry. “Dieter Berg will give his view on the industry,” said Lange. Another highlight of Monday morning will be the annual facts and figures presentation with data on growth and claims, along with the macro-economic outlook from the chairman of the Facts & Figures Committee.

Monday afternoon the macro view turns to the future with the cargo workshop. That will focus on the economic outlook for the maritime industry. Topics to be addressed in the workshop include specialized cargo markets, freight-forwarder liability insurance, and smart logistics. There will be a press release with key findings which Lange added, “is always extremely interesting.”

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Tuesday afternoon will include the ocean hull workshop, and separately the legal and liabilities session. A main topic in the latter will be the bankruptcy of the big Korean containership line Hanjin last year, but also consolidation among Asian container-ship lines including operators from Japan, Korea, and China.

“We will get the view directly from the coal face,” said Lange. There are also likely to be discussions about new marine bunker fuel and emissions rules.

Wednesday morning, the loss-prevention workshop “always has good thinking,” said Lange. “It’s a great workshop. There will be discussion of weather risk management, also the Internet of Things and topics like blockchain technology in cargo, cyber, and data analytics.”

Wednesday ends with the “Japan Evening,” and the event closes with a meeting of the new executive committee on Thursday morning.

Gregory DL Morris is an independent business journalist based in New York with 25 years’ experience in industry, energy, finance and transportation. He can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

2017 Risk All Stars

Immeasurable Value

The 2017 Risk All Stars strengthened their organizations by taking ownership of improved risk management processes and not quitting until they were in place.
By: | September 12, 2017 • 3 min read

Being the only person to hold a particular opinion or point of view within an organization cannot be easy. Do the following sound like familiar stories? Can you picture yourself or one of your risk management colleagues as the hero or heroine? Or better yet, as a Risk & Insurance® Risk All Star?

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One risk manager took a job with a company that was being spun off, and the risk management program, which was built for a much larger company, was not a good fit for the spun-off company.
Rather than sink into inertia, this risk manager took the bull by the horns and began an aggressive company intranet campaign to instill better safety and other risk management practices throughout the organization.

The risk manager, 2017 Risk All Star Michelle Bennett of Cable One, also changed some long-standing brokerage relationships that weren’t a good fit for the risk management and insurance program. In her first year on the job she produced premium savings and in her second year is in the process of introducing ERM company-wide.

Or perhaps this one rings a bell. The news is trickling out that a company is poised to dramatically expand, increasing the workforce three- or four-fold. Having this knowledge with certainty would be a great benefit to a risk manager, who could begin girding safety, workers’ comp and related programs accordingly. But things sometimes don’t work that way, do they? Sometimes the risk manager is one of the last people to know.

The Risk All Star Award recognizes at its core, creativity, perseverance and passion. The 13 winners of this year’s award all displayed those traits in abundance.

In the case of 2017 Risk All Star winner Steve Richards of the Coca-Cola Bottling Company, the news of an expansion spurred him to action. He completely overhauled the company’s workers’ compensation program and streamlined its claim management system. The results, even with a much higher headcount, were reduced legal costs, better return-to-work experiences for injured workers and a host of other improvements and savings.

The Risk All Star Award recognizes at its core, creativity, perseverance and passion. The 13 winners of this year’s award all displayed those traits in abundance. Sometimes it took years for a particular risk solution, as promoted by a risk manager, to find acceptance.

In other cases a risk manager got so excited about a solution, they never even considered getting turned down. They just kept pushing until they carried the day.

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Butler University’s Zach Finn became obsessive about what he felt was a lackluster effort on the part of the insurance industry to bring in new talent. The former risk manager for the J.M. Smucker Co. settled on the creation of a student-run captive to give his risk management students the experience they would need to get hired right out of college.

The result was a better risk management program for the university’s College of Liberal Arts and Sciences, and immediate traction in the job market for Finn’s students.

A few of our Risk All Stars told us that the results they are achieving were decades in the making. Only by year-in, year-out dedication to gaining transparency about her co-op’s risks and learning more and more about her various insurance carriers, did Growmark Inc.’s Faith Cring create a stalwart risk management and insurance program that is the envy of the agricultural sector. Now she’s been with some of her insurance carriers more than 20 years — some more than 30 years.

Having the right idea and not having a home for it can be a lonely, frustrating experience. Having the creativity, the passion and perhaps, most importantly, the perseverance to see it through and get great results makes you a Risk All Star. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and passion.

See the complete list of 2017 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]