960 Coursework Assignment 3: Marine Insurance, Reinsurance Analysis

This coursework assignment explores the concepts of reinsurance and marine insurance, including cargo insurance. It examines the functions and importance of reinsurance in reducing financial costs and transferring risks within the insurance industry. The assignment also delves into various classes of marine business, such as cargo insurance, and analyzes how technology, including innovative advancements, affects the freight forwarding industry. The analysis covers how technology improves efficiency, reduces costs, and enhances customer service. It also addresses the use of handheld scanners, electronic data processing, and other technologies that impact operations. The assignment references several academic sources to support its findings and offers a comprehensive overview of the interplay between reinsurance, marine insurance, and technology in the modern business environment.

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960Coursework assignment 3 answer template
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960Coursework assignment 3 answer template
Reinsurance
Reinsurance is a security form. A reinsurance agreement is a protective agreement.
The back-up scheme allows the cadent security network supplier to reimburse a predefined
bid of a specified class of protective demands awarded by the cadent to be lonely protection
or a predefined strategic agreement. The text used is that the reinsurer accepts the danger
posed by the approaches in question. Cases payable by the reinsurer may be transferred or
offered at a respective bid location or a basis of surplus1 (the part of each situation or the
total of transactions in some pre-defined USD) (the basis of each situation)
The essence and motive behind privacy are to reduce budget expenses for
individuals, businesses and various components arising from the prospective incidents of
unexpected circumstances. Any reinsurance agency sells cover strategies, which guarantee
that the support scheme reimburses policyholders for some of these unpredictable
occasions in the budget. The consolidation of liabilities under the backup plan makes all the
misfortunes more unexpected than the situation is for every protected person, thus reducing
the risk to the whole person. Protection enables individuals, companies and various
components to carry out more risky operations. In a free business core, this creates growth,
competition and efficiency2.
According to Park et al., (2015) re-insurance based on nature and incentive to reduce
monetising costs for insurance companies arising from the possible case of the privacy
allegations, thus further enhancing business centre growth, competition and efficiency3. The
transfer of binding deals further extends the risk to the entire privacy structure. Likewise, an
insurance company can purchase a truly comprehensive re-insurance from at least one re-
insurance company as a protective strategy comes from a backup scheme. A reinsurance
company may also reduce its agreed reinsurance opportunity by purchasing reinsurance
coverage from various re-insurers, both local and international. Re-insurance organisations
have two basic classes: direct experts that have their very used record managers who
manufacture businesses and specialist organisations or re-insurance traders that do
business4. Some writers get a piece of their work by officials, and some representative re-
1 Balbás, Alejandro, Beatriz Balbás, Raquel Balbás, and Antonio Heras. "Optimal reinsurance under risk
and uncertainty." Insurance: Mathematics and Economics 60 (2015): 61-74.
2 Rose, Francis. Marine insurance: law and practice. CRC Press, 2013.
3 Park, Sojung Carol, and Xiaoying Xie. "Reinsurance and systemic risk: The impact of reinsurer
downgrading on property-casualty insurers." Journal of Risk and Insurance 81, no. 3 (2014): 587-622.
4 Rose, Francis. Marine insurance: law and practice. CRC Press, 2013.
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insurers expect a firm from the surrendering organisations immediately. Mediators assessed
the majority of U.S.A re-insurances. The composition and formulation of reinsurance
agreements are not as strictly regulated as security agreements, and there is no reinsurance
policy between private companies. A reinsurance agreement is often an initial duplicate
agreement, and the agreement between the two meetings is noteworthy. Given the many
unusual instances and exemptions, reinsurance speculation is difficult to create5.
A
Class of business underwritten:
According to Carolan et al. (2017), there are various classes of Marine business
showing different characteristics6:
Cargo
This is one of the earliest marine protective types. Ship, products or ship/commodity
in the 1600s were the strategies.
Payload protection typically pays the policyholder against products or products loss
while being transported from one goal to the next. Payload protection since the most
punctual long interchange periods, Payload has encased a natural piece of marine
protection. Protection normally covers cargo while on the coast. "Marine" Cargo cannot,
without a doubt, draw near any water.
Regular payload protection gives repayment against loss of or damage to the stock
caused by flame or explosion, crash, sink, invert, edge washing and normal penance.
Normally, the intentional penalty is the punishment of property in sea voyages in
order to foresee the loss of both ship and freight (see section 4e for additional subtleties) In
this case, the penalty may be fractional so that a payload is saved or the entire relegation
may be lost in extreme cases. Penalty proceedings shall be:
1. Goods cast off to help a stranded ship with the purpose of re-floating them;
2. sound damage caused by the water used to make a flaming fire;
3. Goods cast away from keeping a vessel in danger of sinking in water.
Load protection mostly connects to the time when products leave the dispensary centre
or capacity location, keeps in the middle of the traditional travel course and ends either on
5 Balbás, Alejandro, Beatriz Balbás, Raquel Balbás, and Antonio Heras. "Optimal reinsurance under risk
and uncertainty." Insurance: Mathematics and Economics 60 (2015): 61-74.
6 Carolan, Michael, Brendan Mullan, and Elizabeth C. Sackett. "RECENT DEVELOPMENTS IN EXCESS
INSURANCE AND REINSURANCE." Tort Trial & Insurance Practice Law Journal52, no. 2 (2017): 369.
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the last destination or the expiration of 60 days after the last port has been released,
whatever first7.
B
As Barrera et al., 2015 claimed that data innovation has recently proven to be the
leader in the development of technology frameworks, which have changed most business
components in many ways8. The freight exchange is one industry, which has to figure out
how to receive innovations. There is a growing risk of freight forwarders neglecting to
welcome and accept innovation, which means that the portion of the trading network is at
risk of falling behind and lacking the possible advantages of innovation.
Effective calculated companies are at the cutting edge of new developments every
day. Organisations face significant revenues now when they perform hi-tech equipment, as
they understand the difficulties and openings that are later on accessible to coordination.
There are no many reasons, which cargo organisations are unable to use for significant
explanations in the current aggressive economy behind them. Innovation, which was made
explicitly available to the cargo business, is now promptly available. Those organisations,
which are already taking action and taking advantage of advances, will agree that it is
worthwhile for innovation.
According to Jiang (2017), the use of innovation enables cargo companies to meet
growing customer needs9. This increases public authorities and notoriety but also enables
companies to develop and make progress among their competitors. If a freight forwarder
fails to give the customer what they require efficiently, the customer is likely to choose a
creative company that adapts innovation well and can give aggressive administration.
Organisations, which constantly increase resources, will see a wide range of benefits, part of
which is time productivity and cost funds, which will allow them to take control of various
organisations. Innovation patterns have a major impact on the way supply chains can be
monitored by the camera. With better management frameworks, the additional time that can
be used elsewhere for further upgrades is affected.
7 Balbás, Alejandro, Beatriz Balbás, Raquel Balbás, and Antonio Heras. "Optimal reinsurance under risk
and uncertainty." Insurance: Mathematics and Economics 60 (2015): 61-74.
8 Barrera, C., R. Guanche, and V. Ayllon. "Marine transport prediction methodology." Instrumentation
viewpoint 18 (2015): 42-42.
9 Jiang, Ge, Dingzhong Feng, and Weihang Zhu. "A large and heavy cargo transport system designed for
small and mediumship maintenance and repair." Journal of Ship Production and Design 33, no. 3
(2017): 212-220.
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Although we are in the time of tablets, mobile phones and web-based life now, many
cargo companies still rely on faxes, telephone calls and daily messages to operate every
day. An adjustment of tasks is necessary if a cargo organisation wants to move forward and
improve in the current atmosphere.
Use of a Button Push
It is credible that all cargo procedures can be enhanced with a catch push. Innovation
is always revised and improved to consider better control in the cargo process. In order to
make it easier for companies to organise and plan shipments, executives can request, and
innovations in perception can be introduced that enable cargo forwarders to control the
development of goods via clear and modern monitoring. Continuing frameworks are often
used to transfer up-to-date shipment information to customers. Currently, the data provided
reach customers via a host of developments including computers, mobiles and PDAs. By
being accessible, customers can learn the area, condition and expected transport time of
their shipments but in a rush10.
Recognisable innovation programmed also enabled tasks to be performed much
more smoothly when transporting goods from one area to another. When receiving
programmed advances such as manual scanners, proficient forms are taken into account
day after day. Handheld scanners can be used to gain an understanding of products and
loads; this alone reduces the chance of slip-ups, ensures all shipments move to the right
area, and improves administrations and retailers ‘confidence. The IMRG (Interactive Media
in Retail Group) has assessed UK distributors to' Products Lost in Transit' (GLIT) at £ 48.5
million annually. This figure will be reduced by mechanised progress as carriage can be
effectively monitored11.
With programmed proof innovation, it is possible to efficiently print reports and logs
towards every day's finishing, alongside PC frameworks while transporting products. The
electronic data progression collects information on the stacking, discharge and total volume
of the transport, and considers better future arrangements. Innovations in the freight
forwarding industry will continue to take on a very critical job later. Organisations can view
execution upgrades and productivity rates by accessing high tech hardware, enabling them
to manage clients.
C
10 , Rose, Francis. Marine insurance: law and practice. CRC Press, 2013.
11 Jiang, Ge, Dingzhong Feng, and Weihang Zhu. "A large and heavy cargo transport system designed for
small and mediumship maintenance and repair." Journal of Ship Production and Design 33, no. 3
(2017): 212-220.
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Innovative development pushes the boundaries and changes how the world works
together. There is awareness about everything on the web and information is readily
available for quick access. With Amazon, the pioneer of fast-paced transport administration,
one can get a bundle not exactly one hour after the request, depending on where one lives.
Improved innovation has also increased network profitability, reduced expenditure and
mistakes. These advantages benefit all areas of business coordination: lorry transport,
global transport (sea and air), managers ' warehousing networks and subsequent shipments.
Given below are five significant innovation advances that have majorly changed the eventual
destiny of the business of coordination.
Shipment Tracking Systems
Customers already booked shipments received an expected date of transport and
was subsequently kept obscure unless they opted to call on the phone. Today, web and
programming propel enable customers every minute of each day to access supplies and
follow frameworks. Besides enhancing customer experience, this also saves the
organisation time and cash. Many companies offer to personalise framework for our
customers to screen and process their goods. It emphasises sending warnings and
messages with explicit data for the load connected to them, adaptable details and customer
accounts12.
Internet of Things (IoT) and Radio Frequency Identification (RFID)
Numerous gadgets are now made from cell phones and sensors to vehicles with
inherent Wi-Fi capabilities and sensors. Each person has easy access to Wi-Fi and the Web,
which is why it has called the Internet of Things. For example, IoT opens numerous open
doors to the storage network by maintaining a strategic distance from hazards, which
reduces costs and delays. Taxis, freight ships, trains, and so on are included in the sensors
and an interface with a control or dispatcher alert. These sensors process and transmit data
to the team that collects knowledge in wrapped hazards and information at this point.
Despite the fact that IoT is not an innovation, it continues to affect the fate of coordination
with a gradually exact perception and transport of products.
RFID innovation, also used for several years, saves the time that organisations can
follow their stocks. Innovation is a mainstream work. The item is equipped with a Tag or
Sensor, and radio waves are transmitted. The information is then collected and processed
by the company. Scanner tags are like RFID labels, but the prevailing speed in data
transmission, information management of RFIDs is even more engaging, and the way
12 Devaraju, Abhilash, Linying Chen, and Rudy R. Negenborn. "Autonomous Surface Vessels in Ports:
Applications, Technologies and Port Infrastructures." In International Conference on Computational
Logistics, pp. 86-105. Springer, Cham, 2018.
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innovation works. Today, many organisations use RFID labels to display compartments in
their transport distribution centres. Various companies, for example, the clothing business
and real entertainment parks, have been using RFID labels13.
Autonomous Trucks and Drones
The fact that a PC drives from A to B, or gets a bundle from a flying unmanned,
elevated car sounds like something out of a film, but that is the place one can go.
Independent cars have not been very far behind, as of now. Companies like Uber have
effectively entered into complete agreements using independent Lorries, with Tesla this year
unloading a lorry. While the driver in the driver's seat to screen the PC was not entirely
driverless, it is a major step forward in this innovation spring and can possibly increase
efficiency in the transport. The destiny of bundles, known as Amazon Prime Air, was
reported by Amazon ideal for cars to enter the doorway. Automotive transports are a few
years ago due to administrative measures and associated expenses, but the possibility is
good that they will not lie around in a four-hour period hanging tight for a package14.
Enhanced GPS Accuracy
According to Soares et al. (2015), the days before you went out are long gone when
you printed headings from the PC15. Now almost everybody uses GPS, whether they have
been on their vehicles or mobile phones. The accuracy of these gadgets has increased,
helping deceived, lost drivers to improve the production network. The propelled accuracy of
the GPS takes account of the increased profitability and satisfied customers by tracking truck
areas and improving traffic data access.
Social Media
According to Walker et al. (2019), the intensity of web-based life improves the
business and activities of coordination16. These stages are becoming the most difficult and
13 Dudin, Mihail Nikolaevich, Natalia Pavlovna Ivashchenko, Еvgenia Еvgenevna Frolova, Aslan
Huseynovich Abashidze, and Anait Sergeevna Smbatyan. "Innovative approach to the development of
the logistics system of supply of the Arctic region space." International Journal of Economics and
Financial Issues 6, no. 4 (2016): 1965-1972.
14 Tucci, Andrew E. "Cyber risks in the marine transportation system." In Cyber-Physical Security, pp.
113-131. Springer, Cham, 2017.
15 Soares, Carlos Guedes, Roko Dejhalla, and Dusko Pavletic, eds. Towards Green Marine Technology
and Transport. CRC Press, 2015.
16 Walker, Tony R., Olubukola Adebambo, Monica C. Del Aguila Feijoo, Elias Elhaimer, Tahazzud
Hossain, Stuart Johnston Edwards, Courtney E. Morrison et al. "Environmental effects of marine
transportation." In World Seas: An Environmental Evaluation, pp. 505-530. Academic Press, 2019.
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effective way for businesses to talk to customers, to communicate pressing data, news from
the industry and customer responses quickly. As Tucci (2017) indicates that 59 per cent of
Americans have an online networking account agree that Internet-based client management
has made it easier to solve concerns and questions17. Companies now highlight their social
media presence to get our customers news and updates on LinkedIn, Facebook, Twitter,
and Google+. Being aware of the latest innovation is undeniable to remain aggressive and
upgraded. The coordinating business takes great advantage of the latest innovations and
continues to grow as progress is made. Innovation achievements will continue for a
considerable time to push the limits.
Recommendations
Innovation has come to the cutting edge and can make transportation faster and
appearance safer. The problem is that most cargo shipping companies are not ready to start
using this type of innovation when they should look into different ways of diversifying their
risks. Although the base and inclusion are predictable, many people do not accept self-
regulating cargos, which are now prepared to influence the network greatly. The largest part
of the cargo industry is gradually just starting to grasp the idea of self-government cargos.
According to data gained from industry reviews, the desirability is that change will not go a
long way, but through research, there is evidence that change is good for any business
activity. However, there is still a lot of vulnerabilities for most of them, which they should
work to improve18.
Conclusion
Cargo carriers must continue to keep trends and developments up to date. The best
companies have to concentrate on the quality of their products and their commitment to their
partners and clients. As technology evolves and moves forward, companies need to adjust
and change or stagnate in times, as this segment is very essential for the trading segment of
any country. Looking into innovative ways and cost-cutting ways are essential as it would
mean more efficiency and effectiveness for business and added comparative advantage.
17 Tucci, 2017
18 Shen, H., Zhang, J., Cao, H. and Feng, J., 2016. Development research of marine engine room
simulator for offshore supply vessel based on virtual reality technology. Int J Multimed Ubiquitous
Eng, 11(5), pp.105-120.
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References
Books
Rose, Francis. Marine insurance: law and practice. CRC Press, 2013.
Marcus, Henry S. Marine transportation management. Routledge, 2017.
Journals
Balbás, Alejandro, Beatriz Balbás, Raquel Balbás, and Antonio Heras. "Optimal reinsurance
under risk and uncertainty." Insurance: Mathematics and Economics 60 (2015): 61-74.
Barrera, C., R. Guanche, and V. Ayllon. "Marine transport prediction
methodology." Instrumentation viewpoint 18 (2015): 42-42.
Carolan, Michael, Brendan Mullan, and Elizabeth C. Sackett. "RECENT DEVELOPMENTS IN
EXCESS INSURANCE AND REINSURANCE." Tort Trial & Insurance Practice Law
Journal52, no. 2 (2017): 369.
Devaraju, Abhilash, Linying Chen, and Rudy R. Negenborn. "Autonomous Surface Vessels in
Ports: Applications, Technologies and Port Infrastructures." In International Conference
on Computational Logistics, pp. 86-105. Springer, Cham, 2018.
Dudin, Mihail Nikolaevich, Natalia Pavlovna Ivashchenko, Еvgenia Еvgenevna Frolova, Aslan
Huseynovich Abashidze, and Anait Sergeevna Smbatyan. "Innovative approach to the
development of the logistics system of supply of the Arctic region space." International
Journal of Economics and Financial Issues 6, no. 4 (2016): 1965-1972.
Jiang, Ge, Dingzhong Feng, and Weihang Zhu. "A large and heavy cargo transport system
designed for small and medium ship maintenance and repair." Journal of Ship
Production and Design 33, no. 3 (2017): 212-220.
Park, Sojung Carol, and Xiaoying Xie. "Reinsurance and systemic risk: The impact of reinsurer
downgrading on property-casualty insurers." Journal of Risk and Insurance 81, no. 3
(2014): 587-622.
Shen, Haosheng, Jundong Zhang, Hui Cao, and Jing Feng. "Development research of marine
engine room simulator for offshore supply vessel based on virtual reality technology." Int
J Multimed Ubiquitous Eng 11, no. 5 (2016): 105-120.
Soares, Carlos Guedes, Roko Dejhalla, and Dusko Pavletic, eds. Towards Green Marine
Technology and Transport. CRC Press, 2015.
Tucci, Andrew E. "Cyber risks in the marine transportation system." In Cyber-Physical Security,
pp. 113-131. Springer, Cham, 2017.
Walker, Tony R., Olubukola Adebambo, Monica C. Del Aguila Feijoo, Elias Elhaimer, Tahazzud
Hossain, Stuart Johnston Edwards, Courtney E. Morrison et al. "Environmental effects
January 2019 10

960Coursework assignment 3 answer template
of marine transportation." In World Seas: An Environmental Evaluation, pp. 505-530.
Academic Press, 2019.
January 2019 11