NIBA / Special Feature
The move towards IoT-sensor fitted cargo containers, or ‘smart containers’, is also gaining momentum as more businesses invest in greater risk mitigation in the supply chain. According to maritime research and advisory firm Drewry, approximately 25% of shipping containers worldwide are expected to be equipped with IoT devices by 2026, enhancing tracking and condition monitoring capabilities. Daniel Morrison, Head of Marine at NTI, says, “Additionally, the sensors provide a significant increase in available data, providing greater opportunity to analyse and identify existing or potentially developing issues early, enabling process changes that can prevent loss or damage. As an insurance provider, this enhances our ability to continually improve our customer service by strengthening loss prevention and claims responses, which in turn help manage insurance costs and recover loss or damage from responsible parties. “The sensors also give us the opportunity to develop more tailored products for
our customers based on a detailed risk profile, and also look at providing new solutions such as usage-based insurance or parametric covers.” However, new technology like this comes with a huge asterisk. Because, like any tech innovation today, it naturally introduces new risks to mitigate. According to Briscoe, “Like any other internet-connected device, IoT sensors should be considered from a cybersecurity perspective, so they are adequately protected from malicious intent.” Many IoT devices, for example, are shipped with default or weak passwords like ‘admin’, or even ‘12345’, which are an open invitation to threat actors. “We wouldn’t leave our keys hanging on the gate, and it’s important not to do the cyber equivalent,” says Briscoe. “We encourage brokers to have conversations about the role IoT can play in improving their customers' risk mitigation – making them a more attractive risk for optional extensions like spoilage
cover while protecting their business from cyber risks with appropriate device management and access controls.” Morrison agrees, adding it’s essential to understand where they use third-party providers or suppliers. “It’s important to know what level of automation and integration exists in their processes and their preparedness to share any data. “As development and integration of technology in supply chains continues to grow, data sharing with insurance providers creates an opportunity to improve the propositions and services we provide.” Whether on the road or at sea, the role brokers can play in advising their clients about risk mitigation and management in the transportation of goods goes far, far beyond preparing a good submission for an insurer. From recruitment strategies to training processes, technology implementation to understanding the pros and cons of investing in a ZEHV, the value-add brokers can provide in this sector right now is huge.
54 / INSURANCE ADVISER JUNE/JULY 2025
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