How to use distance to coast data to inform your coastal risk

At a glance:

  • Coastal counties in the U.S. are home to over 126 million people, or 40 percent of the total U.S. population, with an estimated $36.4 trillion in exposure across 18 states. 
  • Globally, 2.4 billion people live within 60 miles of the coast. And, about 10 percent of the world’s population live in coastal areas that are less than 10 meters above sea level. 
  • If you’re writing or managing coastal risk, it’s imperative that you couple coastline data with coastal related risks. 

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

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.  

NFIP update: What P&C insurers need to know

At a glance:

  • National Flood Insurance Program (NFIP) was extended (again) on Thursday, Dec 6
  • This was the ninth short-term extension in 2018, and the eighteenth extension since 2008
  • Congress has until Friday, Dec 21 to pass another extension 
  • A long-term solution remains elusive while the NFIP continues to lose an estimated $1.4 billion each year and remains $20+ billion in debt to the US Treasury
  • Despite the NFIP, the private flood insurance market grew $217 million in 2017

It’s time to evolve how you collaborate in a data-driven world

When I first discovered how well the insurance industry collaborates, I was blown away. As an outsider, learning how agents, brokers, carriers, and reinsurers all work together to identify, write, and share risk was both overwhelming and fascinating. I was impressed at how multiple insurers participate in sharing a single risk and how each does so leveraging its unique strategy and specialty. An industry that initially seemed boring to me became artful and fascinating, even noble. I continually reflect on how this level of collaboration and risk sharing makes tremendously ambitious projects—from skyscrapers to city centers—possible. And yet, surprisingly, this industry that is so fundamentally built upon collaboration seems to lag far behind its peers when it comes to technology innovation and collaboration.

3 ways to speed the property underwriting quote process

An excerpt from our latest eBook: click here to download the full version.

Last year’s record insured losses, $144 billion globally according to Swiss Re, have proven to be a catalyst for reinvigorating P&C insurers’ focus on driving efficiencies in the commercial underwriting process—ideally for minimal cost and disruption.

One of the key issues emerging is a gap between the wealth of information that is now abundant and insurers’ ability to process all that information—there’s both a deficiency in speed to information and the ability to harness its value. This deluge of data, in particular natural hazard risk data, is hindering the performance of property underwriters. But it doesn’t have to.

Bridging the gap: Why data is a problem...and an opportunity

At industry events I generally come away invigorated by my conversations with clients and prospects. This year, however, the energy has been a bit different. That energy has had more urgency and emotion behind it. It’s clear the unprecedented events of 2017 took a toll on people, and there’s a compelling need to do something about it (especially with the 2018 hurricane season just around the corner). 

Q&A with HazardHub, leading hazard data provider for property underwriting 

HazardHub may be a newer name on the data scene, but with 24+ hazard datasets and risk information in shapefiles and APIs, these experienced data scientists are pros at modeling volatile perils like flood, storm surge, wildfire, earthquake, and more. Recently, SpatialKey caught up with John Siegman, founding partner at HazardHub, to talk through the power of hazard data for insurers. Here’s what he had to say about how their data is helping insurers better select and manage risk:

Underwriters: create competitive advantage with advanced data & analytics

At a glance:

  • New external data sources are enabling underwriters to better understand potential risk and create opportunity.
  • Insurers can improve combined ratios by 16-21 points using insurance analytics to more accurately assess risk in property underwriting.
  • Underwriters need to leverage innovations in data and analytics to build healthier portfolios and differentiate in the market, which means adapting their systems to keep pace with the latest science and technology.

As an underwriter, you’re already data driven. But, how data informed are you? To effectively compete, insurers—and underwriters in particular—will need new and innovative sources of external data, alongside advanced analytics, to inform underwriting strategy and put that strategy into practice at the point of sale.  

The underwriter of the future is here, now

There’s been a lot of talk in recent years about technology, innovation, and the “underwriter of the future.” Well, the underwriter of the future is here, right now in 2018. The technology to streamline and automate property underwriting exists now. And, the hazard data and advanced analytics to select and assess risk with a new level of confidence and precision exist as well. If you’re like me, however, you may sometimes put off trying something new (and better) in favor of the status quo. So, what gives?

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