5 November 2018

“Hard” Market Conditions in Ocean Cargo Find a Solution in InsurTech

​Over the past year, there has been an increasing number of Lloyd’s syndicates who have withdrawn or been closed from the London marine cargo market. 

Over the past year, there has been an increasing number of Lloyd’s syndicates who have withdrawn or been closed from the London marine cargo market. The decline of these cargo syndicates reduces the overall supporting capacity from market leaders but also leaves over $6.4 billion dollars of market share up for grabs.

The reasons for this, according to Lloyds, include cargo reportedly running at a 135% loss ratio. This has put a large number of Lloyd’s syndicates either under review or closed completely and brokers are being forced to find other alternative options for their clients. There was also consolidation in 2018 with a number of larger insurance companies purchasing more vulnerable companies. This has resulted in a reduction in the number of market leaders available which restricts different options for insureds.

Lloyd’s has instructed its managing agents to provide a quarterly reports plan to improve the underwriting performance of the seven under-performing classes— Life Sciences/Pharmaceuticals being one of them. The bottoming out of cyclical market conditions, frequently caused by over-capacity, often results in violent price and coverage adjustments that punish not only those insureds with poor operations but the good as well.

The use of technology and data can help insurance buyers to differentiate their risk profiles. Corvus specializes in providing broad Ocean Cargo and Stock Throughput coverage for spoilage and other perils for Temperature sensitive products within the Food and Life Science industries. We are using data from leading IoT sensor providers to provide something NEW that is helping Brokers on our platform differentiate themselves and win new business with Life Science and traditional food customers.

Corvus compares the temperature shipment data of an insured to our mammoth database of shipment data. Our algorithms produce a Corvus Score through which we communicate our underwriting outcomes and coverage grants. We also use our CrowBar data platform to bring new information to our clients throughout the policy year in order to help our insureds identify anomalies that might lead to a claim. Working together, we manage risk and reduce claims. The win-win solution of Corvus, for those insureds that want to engage with the use of their data, is a better outcome from a “hard” insurance market that acceptance of price increases.

Mike Karbassi

Mike Karbassi is Vice President and Head of Cyber Underwriting at Corvus. He specializes in Network Security, Privacy Liability, Technology E&O, Media Liability, and Miscellaneous Professional Liability. Karbassi has over a decade of experience in insurance and is a graduate of the Boston University Questrom School of Business.

Gerritt Graham

Gerritt is the Chief Commercial Officer at Corvus. He has over 20 years of sales and marketing experience, primarily focused on technology and data solutions for the financial services industry.

James McElhiney

James co-founded Corvus and is the company’s Chief Technology Officer. A 30+ year technology veteran, Jaimie most recently served as CTO of Iora Health and previously co-founded Gazelle.

Mike Lloyd

Mike Lloyd is the Co-Founder and Chief Product Officer of Corvus Insurance. Previously, Mike co-founded Poncho, a personal lines agency InsurTech startup, and was a venture investor at FJ Labs. Mike has an MBA from Harvard Business School and engineering degrees from Virginia Military Institute and MIT.

Phil Edmundson

Phil is the founder and CEO of Corvus. A 30+ year insurance veteran, Phil co-founded broker William Gallagher Associates (acquired by Arthur J Gallagher in 2015) and was an active leader in both the Worldwide Broker Network and Council of Insurance Agents and Brokers. Phil is the Managing Partner of Edmus Ventures where he invests in InsurTech companies including Verifly, Wellthie, Agentero, and Cover Wallet, and serves on the board of Cover Wallet.

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