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TECHNOLOGY | WAR RISK In association with Norwegian Shipowners’ Mutual War Risks Insurance Association (DNK)
A new operating model for digital transformation The Norwegian Shipowner’s War Risks Insurance Association (DNK) insures approximately $224bn billion assets and is one of the world leaders in marine war risks insurance. Some 470 shipping companies are covered by the association against possible damage resulting from war, terrorism, piracy and cyber attacks. DNK’s CEO Svein Ringbakken explains how the 85 year-old war risks insurer’s digital journey is leading it from technology investments to a new operating platform. Digital transformation has become a top priority for businesses in all industries that are under seemingly ever-rising pressure to innovate and grow in a constantly changing environment. Marine insurance is no exception. With a business model that has been largely unchanged since the 17th century, the marine insurance The Marine Insurer | March 2020
industry is particularly exposed to the rapidly changing needs of its core client base. As shipping and supply-chain logistics are embracing digital opportunities at full speed, so the insurance providers that support this important sector find themselves devoting significant time, effort and capital to keep up.
Marine insurance in general, and the specialty war risks insurance market in particular, is making considerable progress in addressing new risks that emerge from new technologies and the increasing cyber risk facing the maritime industry. Insurers are responding with new products, innovative pricing platforms and digital distribution models. Most insurers are planning to invest even more aggressively in technology going forward, expecting that this will strengthen their strategic position and yield positive commercial effects. However, when one considers industries such as finance or media that embarked upon their digital transformation paths long before the marine insurance industry, there is little evidence to suggest that investment in technology alone leads to tangible results.
