André Kreul, Swiss Re Corporate Solutions › dam › jcr:10282b3a-ba55-442f...•Previously Brilliant Factory Leader for GE Power implementing Industry 4.0 at GE's global Supply

• Senior Risk Engineer Property in EMEA Engineering Team with focus on German and French speaking Countries

• Expertise in Risk Engineering Services for manufacturing, machinery breakdown and heavy Industry Segments

• Swiss Re Corporate Solutions digital Champion for Industrial Internet of Things and Industry 4.0 risk transfer solutions

• Previously Brilliant Factory Leader for GE Power implementing Industry 4.0 at GE's global Supply Chain

• 23 Years Industry track record in working with large Turbomachines from Field Service Eng. up to leading a global PMO for digital manufacturing transformation

• Holds a BSc in mechanical Engineering from ABB-Technical College in Baden and an EMBA from the International Management Institute in Zürich

André Kreul, Swiss Re Corporate Solutions

1

General Public Release

Predictive maintenance from risk engineering perspectiveAndré Kreul, Property Risk Engineering Service



André Kreul I Risk Engineering Service 3

Agenda

• Predictive maintenance industry status

• Predictive maintenance from insurers perspective

• Swiss Re Corporate Solutions risk transfer solutions

Data is the new Oil. It’s only useful when

refined!Jess Greenwood, Contagious

Today only 1% of the data generated in

Industry is analysedIBM Martina Köderitz, IBM IBV



Predictive maintenance success stories

Rio Tinto GESandvik Trenitalia

saves daily 2m$ from pdminsights on the mining truck fleet

saves 130m € annually with dynamic train maintenance

avoids machine downtime increasing productivity by 9%

reduced downtime by 50% in some of their manufacturing plants

Elisa

halved its number of telecom network faults in 4 years.


André Kreul I Risk Engineering Service

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yes, currently workingon it

Yes, we start next Year Yes, we start within 3Years

Yes, no start date No

25%

4%7%

24%

40%

Future plans for predictive maintenance

0%

10%

20%

30%

40%

50%

60%

Yes, currently working onit

Yes, we start next Year Yes, we start within 3Years

Yes, no start date No

25%

4%7%

24%

40%

20%

6% 6%

17%

51%

Future plans for predictive maintenance

6

Predictive maintenance industry status

PwC survey PDM 4.0 in September 2018

PwC survey PDM4.0 in June 2017



Operations process transformation;

• integration with all information technology

• roll-out throughout the whole Plant

• connecting all machines and adding sensors to old equipment & manual processes

Indicative benefits;

• maintenance cost optimization 20-30%

• machine downtime optimization 15-30%

• improved quality 10-35%

• new business models

Operations process transformation => Industry 4.0

7

Predictive Maintenance

Manufacturing Execution System

Enterprise Resource Planning

information technology

operation technology



improved risk factors;

machinery breakdown

business interruption

supplementing OEM maintenance schedules

enterprise risk management

AI-Predictive maintenance from insurers perspectiveHypothesis => risk is improving?

8

new risk factors;

cyber vulnerability

data stream reliability

data accuracy & completeness

prediction uncertainty ERM

∑ =>cumulative risk remains similar



Insurance Expertise

Data Analytics Capabilities

Swiss Re Corporate Solutions your partner for non/standard risk transfer solutions<< let’s engage to discuss your developing needs>>

Risk TransferPartnership

Track RecordCreation of

value for Client

Swiss Re Value Proposition

Innovation Track record

Standard solutions;

property damage / BI

casualty / liability

construction & engineering

marine / transport

cyber

Non-Standard solutions

non damage business interruption

unplanned maintenance cover

extended warranty

data based parametric solutions



“Is … growth over?”1

… "Not a chance. It's just being held back by our ability to process all the new ideas fast enough.“2

1R. J. Gordon, "Is US economic growth over? Faltering innovation confronts the six headwinds." CEPR Policy Insight No. 63

2E. Brynjolfsson, A. MacAfee; The Second Machine Age


BackupInnovative Risk Solutionsfour underlying trends that drive innovation in commercial insurance risk transfer



Machinery breakdownservice after sales / epidemic failure

Case 1: Recovery Guarantee in combination with Service and After Sales

A heavy machinery manufacturer wanted to enhance its product offerings and create a client loyalty program at the same time

Swiss Re Corporate Solutions developed an innovative machinery break-down insurance solution as an integral part of the client's service package for their products. We used an established line of business but applied it as a 3rd

party product benefiting the buyer

Case 2: Bespoke Field Equipment Machinery Guarantee insurance

A world-leading provider of intelligent energy and water metering solutions contributes to one of the biggest smart metering projects in Scandinavia

Swiss Re Corporate Solutions offered a Field Equipment insurance to cover the accumulated risk of a high failure rate on installed meters. This could in a worst-case scenario threaten the equity of the client when the majority of the meters are installed

12

Generator owners and unit-contingent off-takers face two kinds of risk during an outage or derate:

volume (unknown duration) and

price (exposure to higher spot market)

Additionally, outages often cause or exacerbate high price events

Unplanned outage

Losses hedged

$0

$100

$200

$300

$400

$500

$600

Strike Price

Unplanned outageelectricity price and outage protection

Discount to traditional hedges. Simultaneous management of price and volume risk is difficult and very expensive to hedge dynamically

Automatic / perfect look-back settlement against transparent price indices



Suite of parametric nat perils solutionsSTORM, QUAKE, HazeShield, Insure8, SMOKE

QUAKE

Insure8

STORM

HazeShield

Smoke / Blaze

14



Force Majeurereturn of pre-payments

Operator enters into a long-term lease of capital goods to be purchased by Special Purpose Vehicle financed via equity and debt

Tri-partite manufacture sales agreement (owner, operator, manufacturer) includes contract cancellation option for the owner in case a force majeure event renders the project uneconomical

Guaranteed pre-payments

In the event of a cancellation of the contract, the manufacturer is obliged to return all pre-payments / instalments made for goods not yet delivered to and accepted by the owner

Cover pays time-dependent return of pre-payments / instalments in accordance with the underlying tri-partite manufacture and lease agreement

15

Legal notice

16

©2019 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or webinar or to use it for commercial or other public purposes without the prior written permission of Swiss Re.

The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.

17

Documents

André Kreul, Swiss Re Corporate Solutions › dam › jcr:10282b3a-ba55-442f...•Previously Brilliant Factory Leader for GE Power implementing Industry 4.0 at GE's global Supply