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

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Risk Management

The Profession

As a professor of business, Jack Hampton knows firsthand the positive impact education has on risk managers as they tackle growing risks.
By: | April 9, 2018 • 4 min read

R&I: Who is your mentor and why?

Ellen Thrower, president (retired), The College of Insurance, introduced me to the importance of insurance as a component of risk management. Further, she encouraged me to explore strategic and operational risk as foundation topics shaping the role of the modern risk manager.

Chris Mandel, former president of RIMS and Risk Manager of the Year, introduced me to the emerging area of enterprise risk management. He helped me recognize the need to align hazard, strategic, operational and financial risk into a single framework. He gave me the perspective of ERM in a high-tech environment, using USAA as a model program that later won an excellence award for innovation.

Bob Morrell, founder and former CEO of Riskonnect, showed me how technology could be applied to solving serious risk management and governance problems. He created a platform that made some of my ideas practical and extended them into a highly-successful enterprise that served risk and governance management needs of major corporations.

R&I: How did you come to work in this industry?

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From a background in corporate finance and commercial banking, I accepted the position of provost of The College of Insurance. Recognizing my limited prior knowledge in the field, I became a student of insurance and risk management leading to authorship of books on hazard and financial risk. This led to industry consulting, as well as to the development of graduate-level courses and concentrations in MBA programs.

R&I: What was your first job?

The provost position was the first job I had in the industry, after serving as dean of the Seton Hall University School of Business and founding The Princeton Consulting Group. Earlier positions were in business development with Marine Transport Lines, consulting in commercial banking and college professorships.

R&I: What have you accomplished that you are proudest of?

Creating a risk management concentration in the MBA program at Saint Peter’s, co-founding the Russian Risk Management Society (RUSRISK), and writing “Fundamentals of Enterprise Risk Management” and the “AMA Handbook of Financial Risk Management.”

A few years ago, I expanded into risk management in higher education. From 2017 into 2018, Rowman and Littlefield published my four books that address risks facing colleges and universities, professors, students and parents.

Jack Hampton, Professor of Business, St. Peter’s University

R&I: What is your favorite book or movie?

The Godfather. I see it as a story of managing risk, even as the behavior of its leading characters create risk for others.

R&I: What is your favorite drink?

Jameson’s Irish whiskey. Mixed with a little ice, it is a serious rival for Johnny Walker Gold scotch and Jack Daniel’s Tennessee whiskey.

R&I: What is the most unusual/interesting place you have ever visited?

Mount Etna, Taormina, and Agrigento, Sicily. I actually supervised an MBA program in Siracusa and learned about risk from a new perspective.

R&I: What is the riskiest activity you ever engaged in?

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Army Airborne training and jumping out of an airplane. Fortunately, I never had to do it in combat even though I served in Vietnam.

R&I: If the world has a modern hero, who is it and why?

George C. Marshall, one of the most decorated military leaders in American history, architect of the economic recovery program for Europe after World War II, and recipient of the 1953 Nobel Peace Prize. For Marshall, it was not just about winning the war. It was also about winning the peace.

R&I: What about this work do you find the most fulfilling or rewarding?

Sharing lessons with colleagues and students by writing, publishing and teaching. A professor with a knowledge of risk management does not only share lessons. The professor is also a student when MBA candidates talk about the risks they manage every day.

R&I: What is the risk management community doing right?

Sensitizing for-profit, nonprofit and governmental agencies to the exposures and complexities facing their organizations. Sometimes we focus too much on strategies that sound good but do not withstand closer examination. Risk managers help organizations make better decisions.

R&I: What could the risk management community be doing a better job of?

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Developing executive training programs to help risk managers assume C-suite positions in organizations. Insurance may be a good place to start but so is an MBA degree. The Risk and Insurance Management Society recognizes the importance of a wide range of risk knowledge. Colleges and universities need to catch up with RIMS.

R&I: What emerging commercial risk most concerns you?

Cyber risk and its impact on hazard, operational and financial strategies. A terrorist can take down a building. A cyber-criminal can take down much more.

R&I: What does your family think you do?

My family members think I’m a professor. They do not seem to be too interested in my views on risk management.




Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]