SpatialKey and IHS Markit collaborate to offer political violence risk intelligence data to insurers

by Jen Smoldt on September 21, 2017

SpatialKey is pleased to offer its insurance clients access to market-leading political violence data from IHS Markit. IHS Markit provides comprehensive location-specific risk scores and in-depth intelligence, which is immediately available to underwriters and exposure managers within SpatialKey’s geospatial insurance analyticsplatform.

Political violence risks, which include terrorism, civil unrest and war perils, are dynamic and highly differentiated geographically—not just at a country level, but also within cities. According to IHS Markit, militants conducted 24,202 attacks worldwide in 2016, up from 18,987 in 2015. Islamic State was the most operationally active militant group tracked by IHS Markit, accounting for 18 percent of all recorded attacks worldwide and 39 percent of all non-militant fatalities.

It’s clear the threat landscape is becoming more complex with more advanced, well organized attacks directed by Islamic State and other groups, combined with an increased frequency of hard to prevent “lone wolf” attacks that use simple weapons and tactics. For insurers, while property damage is still the primary loss driver,
advanced data and analytics are helping to better protect against business interruption risks. In this context, insurers require tools to rapidly understand global risk and identify opportunities to meet the evolving needs of their customers.

SpatialKey’s underwriting and exposure management solutions provide insurers with the ability to exploit faster, better intelligence to price, select and manage risk; thereby, improving underwriting profitability while reducing the downstream costs associated with reinsurance and claims. IHS Markit’s Foresight Country Risk offering delivers global high-resolution, location-specific risk scores covering the full range of political violence perils, as well as intelligence-based terror targets and a comprehensive repository of dynamically updated events.

Today’s newly announced collaboration was developed in partnership with Talbot Underwriting. As a leader in their space, Talbot was the first to realize the potential of bringing together SpatialKey’s advanced analytics with IHS Markit’s industry-leading data: instant access to the insight needed to advance their terror
underwriting strategy.

“The collaboration between SpatialKey and IHS Markit has enlightened our process for analysing terrorism risks and managing accumulations,” explains Steven Tebbutt, Global Practice Leader for Political Violence at Talbot Underwriting. “Through SpatialKey’s platform, our underwriters and exposure managers have direct and immediate access to political violence risk index data from IHS Markit, empowering them to leverage political violence data against our current and new exposures. This, combined with SpatialKey’s visualizations and tailored workflow, leads to more and better data-informed decisions. We’re thrilled to see this collaboration come to life and believe that it will further empower our terror insights.”

SpatialKey President Bret Stone adds, “The proverbial ‘necessity is the mother of invention’ rings true in this case. Talbot recognized the best way to achieve their underwriting goals was to advocate the collaboration of two innovators, IHS Markit and SpatialKey. Our solution is innovating choice and access to expert data, enabling insurers, like Talbot, to effectively select and respond to dynamic risks. We’re thrilled to collaborate with the recognized experts at IHS Markit to deliver tangible insight directly to decision makers.”

Michael Simms, Executive Director, Country Risk at IHS Markit explains, “Talbot is proof that leading insurers trust our forward-looking political violence and terrorism data to make risk selection and pricing decisions every day. Bringing together our risk intelligence data with exposure data in an advanced platform like SpatialKey helps insurers expand their ability to incorporate multiple types of risk insights at scale across their portfolios.”

Read more about terrorism underwriting

 

Topics: Underwriting, Analytics, Data, underwriting analytics, terror underwriting, terror data, IHS Markit

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