Marine insurance policies and class regulations have not been disrupted for the last two hundred years. For instance, calculation of insurance premium is appraised from basic risk factors mainly based on the vessel type, place of build, country of ownership, tonnage, owner claim history. Regulation-wise, ships are required to go through reclassification campaigns every five years. The five-year interval requirement steam from a time where it took 4 years to sail around the globe whilst the 5th year was reserved for the ship maintenance. With the recent progress within machinery sensors, can these archaic but well proven, business models and regulations be fundamentally challenged?
This project aims to radically disrupt established business practices in the shipping industry. Upon the project success, ship owner (e.g. Møller-Maersk) interaction with class societies (e.g. DNVGL) and ship insurance companies (e.g. Gard, Swedish Club) will be fundamentally transformed through the creation of a win-win-win servitisation business model based on digitalised ship machinery maintenance data.
Such disruptive business model has never been realised before as it requires a complex tri-lateral business agreement based on data sharing. In concrete terms, we plan to quantify and exploit the added value of an automated machine monitoring technology deployed on board a vessel that can autonomously (i) digitalize, (ii) quantify machinery health data and (iii) share those data to key actors respective digital cloud solutions that is, shipping insurance underwriters, ship owners, ship OEMs , class societies and shipbuilders. The main challenge is to accurately quantify those benefits versus the risks (e.g. liability) borne by each actors in order to create a sound business model that will incentivise ship owners to equip their vessels with machinery sensors. Such incentivisation is key to quickly disrupt the shipping industry and this project is about triggering it.