Artificial Intelligence (AI) models should be used to provide a nuanced understanding of evolving risk landscapes, ensuring cargo owners make informed decisions about insurance cover, Eyal Goldberg, Chief Executive Officer, Breeze’s told delegates at this week’s Multimodal exhibition and conference.
A transparent, data-driven approach to risk management, powered by AI models will bring more resilience into supply chains by using dynamic risk scoring, contingency planning, and data-driven route optimisation, he said.
“AI can continuously assess risk profiles based on real-time factors such as weather updates, geopolitical developments, and fuel price fluctuations,” said Goldberg.
“AI modelling can also be used for contingency planning to simulate various risk scenarios and their impact on shipping operations.
“This includes simulating situations such as the impact of the water shortage in the Panama Canal on global shipping routes and identifying alternative routes to minimize delays and cost.”
He said that AI algorithms could use historical data on weather patterns, port congestion, and fuel costs, to recommend the most efficient and cost-effective routes for specific shipments.
He added that traditional insurance risk assessments have relied solely on historical claim data, which do not account for dynamic factors, leaving cargo owners vulnerable to inaccurately assessing risk.
“This issue can then lead to under or over-charging insurance premiums, insurers denying coverage altogether where there is no confidence in their underwriting decision, or cargo owners failing to procure the right insurance for their specific needs,” he said.
Goldberg called on stakeholders across the supply chain to collaborate and embrace transparency in order to harness the power of AI and ensure better insurance buying decisions.
Goldberg was speaking at a panel discussing planning for Peak Season at the Multimodal show at the Birmingham NEC, UK, on Tuesday 11th June 2024.
