SkyLight 3.0 & Concirrus: The key to smart marine insurance
3 min read
20 Jun 2018
3 min read
20 Jun 2018
Eniram’s partnership with insurance software provider Concirrus will enable fleet operators and insurers to ‘right-size’ their insurance programmes. This is a practical example of how Wärtsilä moves towards achieving its aim of a Smart Marine Ecosystem. We bring you the details.
The world is moving towards a future that is more and more connected, says Johan Backas, Managing Director of Eniram, a Wärtsilä company.
“With increased connectivity and communication comes better visibility and transparency. In the shipping sector we have begun this journey. The industry-wide drive towards digitalisation is already building our future evolution.”
A partnership with UK-based insurance software provider Concirrus has made it possible to create value by combining that company’s insurance data analytics with Eniram’s own operational data.
Launched in 2018, the partnership boosts the potential of SkyLight 3.0, supporting Wärtsilä’s intention to lead the marine industry’s transformation towards a Smart Marine Ecosystem via improved connectivity and the use of real-time data.
“SkyLight 3.0, delivered as a service and supplied with portable hardware, offers a cost-effective but highly accurate fuel performance-monitoring solution for vessel owners, operators, or charterers who want to accurately track their fuel spend and optimise vessel operations,” says Backas.
The off-the-shelf transponder, he explains, sends vessel data over a dedicated satellite connection to the Eniram cloud.
“Eniram has created proprietary software that allows us to collect various operational data from the vessel. The data is enriched by weather data and the ship’s operational data, for example, from the ship’s noon reports, that allow us to create additional understanding about how the vessel is performing.”
SkyLight has evolved into its latest update on the basis of customer feedback. Enhancements to the service now include mobile notifications and virtual propeller RPM (revolutions per minute) sensing.
“In practice, our partnership is about enabling fleet operators and insurers to ‘right-size’ their insurance programmes,” says Andrew Yeoman, CEO of Concirrus.
“We are entering an era of connected insurance. To take an example, a fleet operator might use their vessel in a conflict zone or their contract might cover use of a ship in the Mediterranean but not worldwide. We can make sure that the operator sticks to the terms of their agreement. Most vessels are not covered to enter all ports, and a lot of claims are registered for some ports, for groundings, for example. Through Eniram’s hardware, we can provide advice about where these risks might be higher.”
“Concirrus has been working in the ‘Internet of Things’ (IoT) space since 2012, helping industry use connected data to find better profits and offer better services,” says Backas.
A marine insurer had approached Concirrus to explore ways of applying their thinking in the marine insurance market, he explains. “Since the marine industry had long ago embraced technology, Concirrus recognised that there are huge amounts of data from marine operators that could be very useful for insurers. Concirrus had been using available marine movement and location data, but saw that the data from Eniram’s technology was more advanced and reliable. That’s why we have gone into partnership.”
The cooperation allows insurance companies to create connected insurance policies for their customers. By enabling real-time data transfer and analysis, digitalisation can facilitate a jump to intelligent insurance that is based on actual vessel performance.
“Both insurers and owners can view this as a win-win arrangement,” says Backas. “Accurate, real-time operational data can be used to provide a transparent and shared view of risk as well as enabling a tailored insurance cover that allows customers to pay for only what they need. Risk can be managed proactively based on a greater understanding of the behaviour that correlates to claims. Insurers and operators can mitigate this type of behaviour before it results in claims, thus reducing risk overall.”
A deep understanding
Concirrus has a deep understanding of the insurance industry and its actors, explains Backas. “They have a very complex product that analyses marine claims data. Concirrus allows us a channel to distribute our competences into the marine insurance industry to create additional value for the insurers and consequently the ship owners, ship managers and ship operators. With Eniram’s rich history in serving marine customers, and Concirrus’ proposition for the insurance market, the partnership strengthens both offerings and accelerates market adoption.”
The opportunities presented by digitalisation will lead to a new era of collaboration and new levels of knowledge-sharing. This provides an opportunity for growth across global value chains generally and for increasing flows of goods and services. The aim of the Smart Marine Ecosystem is to allow various actors in the maritime industry to share data.
Companies that are agile and use real-time big data analytics can react to market fluctuations far more quickly than companies that are not digitally interconnected, Backas believes. “By means of Eniram SkyLight 3.0, Eniram can understand ship operations better both in real time and with enriched data from its vast experience, also predictively. The cooperation between Eniram SkyLight 3.0 and Concirrus is a great example of connectivity.”
The insurance industry is introducing new technologies that will require better data from reliable sources. This combination of technologies helps fleet operators and marine insurers improve the reliability of vessels and lower their operational costs.
“For fleet operators, Eniram technology facilitates safe and efficient operations and has the added benefit of lowering risk,” says Backas.