How can Prescriptive Maintenance solutions influence insurance and reinsurance premiums for critical industrial equipment in large chemical manufacturing plants?
Large Industrial Enterprises in the US alone spend over $50 billion annually to insure their specialised critical equipment (Annual Report on the Insurance Industry, 2021, by the US Department of the Treasury). During premium negotiations, Insurance firms evaluate companies based on risk management programs and the safety records of industrial equipment. Here, Prescriptive Maintenance solutions can impact this process in three key phases: Reduced Risk and Lower Claims • Predictive failure prevention with early anomaly detection: Identify potential equipment issues before breakdowns, reducing downtime and costly repairs. This minimises the risk of claims, potentially leading to lower premiums. • Improved equipment lifespan: Optimize maintenance schedules to prevent premature wear and tear, resulting in fewer claims for replacements or major repairs. This benefits both the insured • Enhanced safety & Risk Mitigation: Prevent accidents caused by equipment failures, reducing liab...