Revolutionising marine insurance with AI: TM's partnership with Hefring Marine
Iceland’s largest marine insurer has found that encouraging its customers to use an AI -driven ‘digital assistant’, designed to assist decision making at the helm stations of fast craft, looks set to enhance loss prevention strategies.
TM Insurance, founded in 1956, has established itself as Iceland’s premier marine insurer. Initially created by companies in the Icelandic commercial marine industry, TM has maintained its leadership in that sector, now accounting for around a 46% market share. Since 1965, TM has diversified its offerings to include insurance products for the private sector, securing an overall market share of approximately 21% in Iceland.
EMBRACING TECHNOLOGY
TM Insurance has consistently demonstrated a forward-thinking approach by integrating cutting-edge technologies into its operations. For example, in the private sector, TM offers web-based automated underwriting and a TM app for automatic claims handling. This commitment to innovation extends to the marine sector through its collaboration with Hefring Marine, a pioneer in AI-driven maritime guidance systems.
IMAS HELM
IMAS Helm from Hefring Marine addresses two critical aspects of fleet operations: accident prevention and fuel efficiency.
This innovative solution employs an onboard Artificial Intelligence system that optimises fuel usage, lowers carbon emissions, and enhances safety through real-time sea navigation. The AI continuously learns and improves its performance over time. It provides fast craft operators with key guidance such as a maximum advised speed, based upon the vessel’s route, current sea state, weather conditions, and the system’s previously learned handling tendencies of the boat.
The IMAS Helm system comprises two main components: the Control Unit and the Sensor Unit. Both units are designed for easy installation on most professional vessels, whether for retrofitting existing boats or integrating into new builds.
The Control Unit is the central computing module of the IMAS Helm system. It collects, stores, and processes data from the Sensor Unit and other onboard systems via NMEA2000. The processed information is displayed on a compatible multi-function display through an ethernet connection. Additionally, all data is uploaded to the IMAS Cloud platform via a cellular network or the vessel’s modem. The IP67-rated Control Unit is designed to connect and integrate seamlessly with most onboard systems.
The Sensor Unit is a high-performance inertial measurement unit (IMU) that connects to the IMAS Control Unit. It features an accelerometer (+/-16g), dual gyroscopes, and a magnetometer. Multiple Sensor Units can be linked to the IMAS Control System if needed. The Sensor Unit is equipped with Hefring Marine’s proprietary rigid body filter for enhanced performance. It is also IP67-rated.
IMAS Helm provides a comprehensive solution for improving the safety and efficiency of fast boat operations, making it an essential tool for modern fleet management.
DISCOVERY AND COLLABORATION WITH HEFRING
TM Insurance has been aware of Hefring's innovative work from the outset. Recognising the potential of Hefring’s IMAS Helm system, TM saw an opportunity to enhance its loss prevention strategies, particularly for operators of rigid inflatable boats (RIBs). The partnership aligns with TM’s 12-year focus on loss prevention in this high-risk segment.
Sigurður Jonsson, Insurance consultant at TM Insurance says: “Insuring fast commercial craft like RIB passenger boats poses unique challenges, primarily due to the potential for severe accidents and injury claims, especially around back and neck injuries that can be sustained by rapid or unexpected jarring motions caused by inappropriate speed or manoeuvres. Hefring’s IMAS Helm system offers a significant improvement in loss prevention. By providing real-time data and analytics on vessel operations, the system helps mitigate risks and enhance safety, reducing the likelihood of costly claims.”
The collaboration between TM and Hefring Marine is designed to incentivise safety and ultimately reduce insurance costs for customers. TM offers a special renewal bonus to clients who install and use the Hefring system, provided they have no claims during the current year. This initiative began during the initial testing phase of Hefring's system with one of TM’s clients and has shown promising results.
According to Karl Birgir Björnsson, CEO and Founder at Hefring Marine, the system has more than one benefit to bring to the marine insurance market: “Not only does IMAS Helm record all data around skipper behaviours, such as hull accelerations, tracks and speeds that can be used to counter spurious claims, its data is also invaluable to train skippers and modify existing skippers behaviours to reduce the likelihood of future incidents.”
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One of TM’s major clients, operating 30% of Iceland's RIB passenger boats, has already adopted the Hefring system. TM anticipates that by the end of the summer season, around 50% of the RIBs it insures will be using Hefring’s technology. Notably, no claims have been filed by customers using the Hefring system, suggesting its effectiveness in enhancing safety.
While the Hefring system doesn’t directly expedite the claims process, or doesn’t do so yet, it provides valuable data that can assist in investigations. More importantly, it offers financial benefits to customers. The renewal bonus effectively reduces the net cost of the Hefring system, making it a cost-effective investment in safety with other key benefits to boot. Additionally, the improved operational safety facilitated by Hefring’s system enhances the overall customer experience. The fuel and hence carbon reductions that the Hefring system also offers stand as a very substantial side benefit for vessel operators and in turn their customers and the planet too.
The willingness of TM to adopt this agreement underwrites the principle that the presence of the Hefring system on a boat has the potential to influence skipper behaviour positively. By monitoring operational data, skippers are encouraged to adhere to safer practices, thereby reducing the risk of accidents. TM has already observed data showing significant differences in skipper behaviour, underscoring the system’s impact.
While TM has not implemented similar monitoring technologies in other sectors, the positive outcomes seen with Hefring’s system in the marine sector suggest potential applications elsewhere. The success of this collaboration highlights the benefits of integrating advanced monitoring and guidance systems to reduce risks and insurance premiums.
The partnership began with a mutual interest in preventing accidents and reducing costly claims in the nascent RIB passenger boat sector in Iceland. By working together, TM and Hefring Martine have created a robust loss prevention program that reflects their shared commitment to innovation and safety.
TM Insurance's collaboration with Hefring, believed to be a market first, could represent a significant step forward in marine insurance. By leveraging AI-driven technology, TM not only enhances safety and reduces risks but also provides tangible financial benefits to its customers.
To find out more about Hefring Marine, visit https://www.hefringmarine.com/.
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