It is often said that data is the oil to make the digital revolution successful. Without high quality data analytics, effective business decisions can't be made. IUMI's Facts & Figures Committee has overseen and produced a growing supply of marine data but has not until now focused on global claims data. Loss ratios are available from a small number of members but a comprehensive database of large claims accompanied by useful trend analysis has been an elusive dream.
This is no longer the case. Following the Hamburg Spring meeting and considerable planning and cooperation from IUMI members, a pilot project for a large loss database has been formally launched.
The aim is to present the findings at the annual conference in Cape Town this year. To do this, the member associations of Belgium, Germany, Japan, Netherlands, Sweden and Singapore have agreed to supply their market's data to an independent party, namely the Boston Consulting Group (BCG), who will then use the data to populate a new IUMI large loss template. A large loss is defined as $250,000 USD at the gross level. Both hull and cargo claims will be captured. The analysis conducted by BCG will include date, cause and location of loss, and types of vessel or cargo.
IUMI is ideally placed to tap the wealth of loss data in the market. Suitable non-disclosure agreements are in place and the IUMI Executive Committee has agreed a business case, available to all associations in their important discussions with their own members. This initiative aims to improve a marine underwriter's decision-making and business operations. I am delighted to be the project manager of this exciting pilot and Don Harrell, chairman of the Facts & Figures committee looks forward to presenting the results to the whole membership at the annual conference.