Improved Underwriting Efficiency: Concirrus Solution
Concirrus has announced the launch of a pioneering solution aimed specifically at the General Aviation insurance market. This contemporary set of capabilities addresses a pressing need to facilitate greater efficiency when writing risks in the face of increasing regulatory and process complexity faced by aviation underwriters.
Aviation underwriters are actively grappling with the challenge of efficiently processing submissions while accurately assessing risks. Studies reveal that up to 40% of underwriters’ time is consumed by non-value-adding tasks, such as manual data entry and paperwork processing, hindering strategic analysis and proactive risk management. The Concirrus platform steps in and alleviates this burden, reducing time spent on the submission phase from hours to just a few minutes, and allowing underwriters to redirect their efforts towards value-adding activities such as risk assessment and portfolio optimisation.
“At Concirrus, we recognise the critical importance of efficiency in aviation underwriting,” says Andy Yeoman, CEO at Concirrus. “This technology is a game-changer, enabling aviation underwriters to achieve unprecedented levels of efficiency and effectiveness. Additionally, when combined with our wider roadmap which adds pricing, compliance, and portfolio capabilities we believe that these one-stop-shop solutions move from interesting to compelling.”
Applied Aviation, a renowned leader in aviation insurance, is among the product’s early adopters. “We are thrilled to be using Concirrus’ innovative platform to streamline our underwriting processes,” says Steven D. Allen, President at Applied Aviation. “This technology has already proven to be invaluable in enhancing our efficiency and accuracy, allowing us to better serve our clients and stay ahead of the competition.”
New Sanctions Model
The AI-driven marine insurance intelligence firm, Concirrus, has launched its latest sanctions module, hailed as the “marine market’s first and only comprehensive risk management solution.” This marks the completion of the Quest One platform, their most recent technological advancement.
According to Concirrus, Quest One is now utilized by numerous markets and brokers, establishing the company as the exclusive technology partner offering fully integrated sanctions management, submission automation, expected loss and risk analysis based on comprehensive market data, ESG monitoring, aggregation management, war risk monitoring, and real-time news alerts—all within a single platform. This achievement is significant, as most insurance brokers and markets, especially those in marine risk management and reinsurance, currently rely on fragmented technological solutions to manage their services and clients.
The State of the Aviation Insurance Market
The aviation insurance market is experiencing significant changes and challenges in 2024. A recent report by Allianz Commercial projects that gross written premiums in the aviation sector will hit a 20-year high, exceeding US$8 billion. This surge is driven by a record increase in air traffic, particularly in the Asia-Pacific and North American regions, and rising costs associated with aircraft repairs, parts, and labour due to inflation.
A key factor contributing to higher premiums is the increasing value of claims, primarily from collisions, crashes, and defective products, which account for 85% of total claims. The ongoing transition to next-generation aircraft and the associated repair costs, especially for engines, are also significant contributors.
The aviation insurance market is also being impacted by geopolitical factors, such as the Russia-Ukraine conflict, which has led to structural changes in reinsurance programs and increased premiums in the hull-war and liability third-party markets. Additionally, the shortage of experienced pilots and mechanics, a lingering effect of the COVID-19 pandemic, poses a risk to aviation safety and could further influence insurance claims.
Despite these challenges, there are also opportunities, particularly in supporting the aviation industry's efforts toward sustainability. Innovations in electric vertical takeoff and landing (eVTOL) aircraft and sustainable aviation fuels are areas where insurers are actively involved, helping to de-risk businesses and promote environmentally friendly practices.
Overall, while the market faces turbulence due to rising costs and geopolitical tensions, the focus on sustainability and technological advancements presents new avenues for growth and adaptation in the aviation insurance sector.