Artificial Intelligence (AI) is set to transform -- among many industries -- the marine insurance sector, presenting both significant opportunities and pressing challenges, a message delivered at the International Union of Marine Insurance (IUMI) annual conference in Singapore.
Speaking at the Innovation & Technology Workshop, Rahul Khanna, Chair of IUMI’s Data & Digitalization Forum, emphasised the rapid pace of technological change: “AI in our sector is moving extremely rapidly. Last year has seen as much meaningful improvement in AI application than we saw in the last five years combined. As an industry, we need to keep pace with this change or we run the risk of being left behind. If we don’t get onboard with this new technology now, it might be too late. In five years’ time, our workspace is going to look very different.”
Delegates heard that the maritime supply chain as a whole is primed for innovation. Currently, fragmented and inconsistent documentation remains a significant pain point, but AI-driven solutions are already streamlining not only the documents themselves but also the processes of sending, receiving, and storing them.
Within marine insurance, AI-powered innovation is expected to integrate brokers and underwriters more closely, generating synergies previously unimagined. From pricing and claims handling to risk assessment, AI will increasingly shape the industry’s future.
However, Khanna also cautioned that these opportunities come with inherent risks: “Basically, AI is a learning tool and it learns from us. It is essential that we train AI in the right way and in an ethical way that avoids bias — both conscious and unconscious.” He added: “There is an IT revolution happening right now. We are seeing AI making significant inroads in our everyday life, making things easier, improving systems and processes, and freeing up time for us all. As marine insurers, we need to keep an open mind and embrace AI into our world. However, we also need to recognize that we will be responsible for building the AI models and we must do this ethically and conscientiously.”