Q&A with Location, Inc., crime risk data provider  

by Jen Smoldt on October 22, 2019


Looking for some innovative crime risk data? Look no further than Location, Inc. These curious problem-solvers are bringing insurers a more comprehensive view of crime risk through advancements in hyperlocal data. We had a chance to catch up with Dr. Andrew Schiller, CEO and Founder of Location, Inc., who sheds light on how their crime risk data is helping more than 150 carriers generate focused underwriting guidelines and combat fraudulent claims—with about a 10% reduction in crime loss ratio and adverse selection. Read on to learn how they’re bringing deeper insights to underwriting and claims.  

What's your data story?

We build and license location data to help businesses solve complex problems about place. Carriers use our predictive violent and property crime analytics to assess liability, theft, vandalism, fire, and other risks. 

Why is your data different?

Until now, carriers have relied on data and solutions that focus on catastrophe, component, and credit to predict risks. And, with rate filings utilizing our analytics in California and 11 other states so far, we’re helping insurers address human-behavior loss risk—even in states where credit scores are traditionally not allowed to be used for such purposes.

How is your solution helping underwriters?

Our hyperlocal crime risk data helps underwriters understand, measure, and select crime risk and calculate premiums with greater accuracy by predicting behavior risk across multiple perils at a fine-grained, geospatial level.

Read the crime data use case 

How about claims professionals?

Tested against claims fraud, where there is correlation, our crime risk data can be used in the development of guidelines for determining which claims get referred to the SIU (Special Investigations Unit).

What’s the science behind your data?

Raw data is collected from over 18,000 local law enforcement agencies across the U.S., and we use a relational database to assign reported crimes from every available agency. This is a key differentiator, as most city and town crime-level data are incomplete and inaccurate. Our proprietary models statistically predict the rates for every major type of crime (violent and property) at the census-block level across the U.S.

What kind of results can insurers expect from your data?

Greater than 90% predictive accuracy based on testing against our database of 20 million policies and more than $8.5 billion in premium. And, about a 10% reduction in crime loss ratio and adverse selection.  

Ah, innovation...how are you innovating?

Our FireRisk product taps into the probability that a given location will have a fire due to negligence—with the precision of a census block.

How does SpatialKey empower your data?

SpatialKey already gives insurers the expert data and advanced analytics they need to assess other man-made and natural catastrophe perils. Now, with our crime data solution, insurers can form a more comprehensive view of risk—all on one convenient platform, thus improving decision-making efficiency.

By bringing together our intelligent crime risk data along with other data choices, SpatialKey simplifies the entire underwriting process. Insurers can better streamline operations by eliminating risks early on, such as pinpointing pockets of low risk within regions often thought of as high risk and vice versa. This results in segmentation and a premium advantage over competitors. 

What can we look forward to from Location, Inc.?

Keeping our focus on behavior, we’re currently testing a new WaterRisk (non-CAT, non-weather related risk such as water damage due to cracked pipes) solution and hope to offer within SpatialKey soon.

Just for fun…if your company was human, what would its traits/characteristics be?

Curious problem solvers who enjoy discovery and coffee.

If your company was a superhero who would it be?  

Reed Richards (aka Mr. Fantastic), mostly because he is pretty brainy and very flexible.

What would your company’s theme song be?

“I'm Not Like Everybody Else" by the Kinks.


Topics: property underwriting, crime risk data

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