Using the Industrial Internet of Things (IIoT), the model analyses real-time data from industrial machinery. This strategy allows insurance companies to offer competitive premium rates based on the individual usage of equipment according to factors such as frequency of machine maintenance and operational efficiency. Manufacturers are set to benefit from a combined offering of risk prevention and tailored insurance, with in-depth data analysis also providing a better understanding of how to run machinery more efficiently.
Inrobin worked with the AFRC’s bid-writing team to secure Innovate UK funding. The firm’s data science experts will now co-operate with the research centre to trial the system on its industrial machinery. The company will also exploit the centre’s expertise in IIoT and connectivity, while tapping into its list of manufacturing contacts to gather further information that might help guide the project.
Insurance providers currently assume that two companies buying the same machine should pay the same premium based on the same life expectancy. However, the newly developed model will offer a more tailored pricing approach – analysing each machine’s specific behaviour and maintenance in real time to adjust rates.
Jose-Maria Guerra, CEO at Inrobin, says: “Using the IIoT we can track life expectancy and failure expectations within the machine in real time to offer manufacturers a premium that fits their needs. Working with the AFRC's cutting-edge equipment throughout the project allows us to build up an understanding of failure and test certain things that would not be possible within a manufacturing environment. We’ve already been speaking to global insurance companies that have registered interest, and we are set to work on a pilot project with a major European provider later this year.”
Danny McMahon, metrology and digital manufacturing team lead at the AFRC, adds: “According to current insurance models, a manufacturer who uses a machine to its full capacity every day without regular maintenance might be on the exact same insurance premium as a company that’s using it at 25% or 50% capacity, while also servicing their machinery each month. With the new model, insurance companies will offer a more competitive service, while manufacturers will maintain their machinery more efficiently.
“Inrobin’s new model will create a more transparent offering for industrial machinery, similar to the use of ‘black box insurance' for cars,” continues McMahon. “In the way that sensible drivers who are looking after their vehicles are rewarded with a cheaper premium, manufacturers sensibly using their equipment can take out insurance that reflects their use, rather than an industry average. The AFRC will act as a transition to market for Inrobin. Following on from helping with the initial bid, we’ll use our state-of-the-art machinery to trial the system and offer machinery expertise to push exploitation forward, helping the business to grow.”