January 28, 2022 · 3 min read
Predictive maintenance plays a comprehensive role in the future of risk management. Find out how in this recap of our webinar, Reducing Production Risks with Intelligent Sensors, a collaboration between AiSight and Funk Beyond Insurance.
We hosted our latest webinar, Reducing Production Risks with Intelligent Sensors (Produktionsrisiken reduzieren mit intelligenter Sensorik) on December first. 64 participants from many fields and countries joined industry leaders Matthias Auf der Mauer, founder and CEO of AiSight, and Manuel Zimmermann, manager of Funk Beyond Insurance, to learn about the impact of predictive maintenance solutions like ours on risk management.
If you’d like to watch the webinar yourself (with English subtitles) you may do so here.
For your convenience, here are four key points.
1. The role of insurance is changing in an unpredictable world.
“Nobody actually wants the substitutions offered by insurers. We want uninterrupted production...”
Manuel opened the discussion with an explanation of how recent volatility has changed the role of insurance. The COVID-19 pandemic has provided an unexpected test of the resilience of our complex and integrated supply chains. They have been found wanting: from the lack of resilience in JIT, to the concentration of value in facilities that can’t work without functioning supply chains.
Nobody predicted this kind of broad, systemic breakdown. When things break outside the parameters of what we consider breakable, how do we evaluate risk? In an unpredictable world, the goal of insurance has to change—simply reducing insurance costs is not enough; we have to insure against the unpredictable. The only way we can do that is with sweeping damage-prevention strategies.
2. Sensors and automated systems have a long history in insurance. But this is different.
“We’re talking about technologies that are really part of the value-added process for businesses…"
Technology has long had its place in insurance. It’s impossible, for example, to insure factories without smoke detectors or sprinkler systems. Like predictive maintenance systems, these systems even employ sensors and a certain level of connectivity. But they aren’t the kind of thing a factory owner spends money on happily—they contribute nothing to productivity.
AiSight’s solution reduces risk and adds value. Companies that adopt this solution stand to save maintenance costs, while also improving productivity—it makes sense even beyond the benefits of damage reduction.
“...that’s what we do at Beyond Insurance.”
3. The wood-processing industry case.
“In six months we recognized 26 faults with 50 sensors... saved about 200000 Euro in total lost production... and increased expected productivity (of maintenance?) by 20%.”
-Matthias Auf der Mauer
Matthias provided a recent use case that supports Manuel’s claims. Deployed in a wood parts fabricator over a six month period, 50 Aion sensors detected 26 defects. Not only did this predictive intervention save the mill 200.000 Euros in lost productivity, it increased maintenance productivity by 20%. In a mill that runs 24/7, every hour of uptime counts.
Manuel brought this back around to a systematic look at how small parts of systems—applicably any and all industrial systems—when overlooked, can cause great risk. Overheating parts can cause fires. Failed ventilation systems can force building evacuations. It all adds up to loss—lost machines, lost productivity, lost value.
4. Oversight and clear parameters make insurance easier for everyone.
“...here, a measurable value delivers payment of claim; meaning insurance pays the moment a sensor reading exceeds a predefined value.”
Manuel explained the advantages of automated oversight with respect to parametric insurance payment. In short, an impartial sensor, providing constant oversight, presents the best-case scenario for both customer and insurer—even in the worst-case scenario.
Besides the value in risk reduction and improved productivity, when it comes down to actually claiming insurance, the customer will receive their payment according to clearly defined measurements, provided by the sensor. The insurer, meanwhile, saves resources by automating the adjustment process. It’s a true win-win situation.
If it sounds like AiSight and Funk Beyond Insurance should start working together, don’t worry—we are. Stay tuned; we’ll share everything you want to know about our new partnership in one of our next blog posts.
If you're interested in our solution schedule a demo.