Brussels Attack Highlights Need for Sophisticated Insurance Analytics Tools

Posted on April 4, 2016 by Sarah Stadler

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Photo credit: REUTERS/Charles Plateau. Photo credit: REUTERS/Charles Plateau.

Sadly, the recent bombings in Brussels—just a few months after the attacks in Paris—are a grim reminder that terrorism has become a fact of life in Western cities.

For Property & Casualty insurers, this unfortunate reality means keeping terrorism risk top of mind when underwriting properties. The three coordinated explosions in Brussels—two at Zaventem Airport and one at Maelbeek metro station—underscore the complex nature of terrorism risk.

To help underwriters write terror risk with more confidence, SpatialKey has added concentric ring models that simulate realistic bomb blast scenarios and provide insurers with more accurate risk assessments.

Get a More Accurate View of Terror Risk

From a single, interactive environment, SpatialKey helps you quickly evaluate terror risk and the impact on your portfolio.

With the new concentric rings models, you can evaluate the worst case scenario—or peak accumulation—if an attack, such as a bomb, were to go off near prospective locations. The model simulates damage radiating away from a bomb blast, so you can see complete or partial damage diminishing as buildings get further away from the original blast site.

“We developed the concentric rings model because our clients and prospects recognized the need to consider terrorism risk in their underwriting and portfolio management processes,” explains SpatialKey Product Manager Angie Olivero. “And now they can differentiate the damages within different radii for a richer understanding of terror accumulations.”

SpatialKey Terror UW Concentric Rings

In addition, SpatialKey gives you the option to run your analysis based on specific metrics in your portfolio, on exposed limits, or on a specific area of interest within custom geographic extents.

And with the SpatialKey Accumulations app, you can dive deeper into terrorism risks using the Rings and Target features, which allow you to:

    • Identify and evaluate peak accumulations of exposure within your portfolio
    • Analyze your portfolio against activity, high-interest properties, or historical terror claims
    • Look at terror target datasets (locations identified as having terrorism risk such as skyscrapers, churches, train stations, etc.)

SpatialKey Terror UW Accumulations

And thanks to an advanced understanding of exposure concentrations, including where terror attacks are most likely to occur, you can analyze your current book of business and apply guidelines to select profitable new business.

What’s more, SpatialKey can help you evaluate the potential for claims given a recent or future terrorist attack. By considering attacks at credible terrorist targets, insurers can begin to understand their overall risk and formulate a claims response plan.

To learn more about how SpatialKey can help you feel confident writing terror risks and minimize the impact on your portfolio, contact us today.

Posted in Insurance, Underwriting, risk assessment | Leave a reply

Manage your exposure concentrations with confidence

Posted on May 18, 2015 by Sarah Stadler

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We’ve been hard at work enhancing our Accumulations app, so you can confidently assess and manage risk across your portfolio. Accumulations delivers analytics and visualization to help you quickly identify peak portfolio accumulations, understand risk composition including policy and location drivers, and monitor capacity utilization and diversification. Leverage these analytics to monitor and adjust your underwriting strategy, evaluate bomb blast scenarios, and understand the impact of acquisitions.

Our latest addition, Ring Accumulations, brings best-in-class analytics and visualization that transform your portfolio data to help you effectively manage risk.

Ring Accumulations helps you monitor your use of capacity

Does your organization set capacity thresholds to help you write better business? Within Rings, you can create reusable scenarios, which include the definition of ring size, geographic extent, and a minimum loss threshold. You will be able to visualize and interrogate the resulting TIV or Exposed Limit accumulations to gain insight into adverse accumulations and further investigate each zone’s compositional drivers. Use these analytics to identify opportunities to better optimize your use of capacity.

Quickly understand adverse terror accumulations

Evaluate multiple bomb blast scenarios of varied size and damage potential. Using SpatialKey’s refined methodology and de-duplication algorithms, you are assured that potential terror exposure is not missed. Use this intelligence to eliminate gaps in understanding, identify top at-risk policies, and place moratoriums in areas of heightened potential exposure.

Reporting to rating agencies is now even easier

Use the results of a Rings analysis to determine and report your top accumulations zones to rating agencies, like AM Best.

Rings, coupled with the already available Grid and Shape accumulation models, gives you a comprehensive suite of intelligence to help you develop risk management strategy, respond to catastrophes and analyze concentrations in exposure, modeled loss and experience data.

Coming this summer

Target Accumulations to help you identify accumulations relative to any reference dataset, like terror targets, points of interest, and acquisition candidates.

Get in touch today to activate this new model.

Posted in Mapping, Insurance, Visualization, Underwriting, risk assessment, Analytics | Leave a reply

Make Better Underwriting Decisions with SpatialKey

Posted on April 15, 2011 by Doug McCune

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The decision to underwrite a property is a complex one, and access to location-specific information is critical. When you're thinking about adding a high-dollar policy to your portfolio, you need to be able to weigh the risks and understand how this new exposure will fit into your current book of business. All too often these risk factors are difficult to access and even harder to put into context.

SpatialKey brings these important pieces of information together quickly, intuitively, and visually. We've integrated complex risk analysis from our partner, CoreLogic, and we're proud to be able to provide risk scores for hazards such as storm surge, earthquakes, sinkholes, and damaging winds. Risk maps show you the distribution of risk for different hazards geographically, which gives you the context you need to establish whether a particular property is a high or low risk and how it impacts your accumulated risk in a particular area. In addition to this risk analysis, SpatialKey also provides easy to use tools for quickly measuring distances. You can easily find out the distance from a prospective property to the coast, or to the other properties already in your book of business.

We're currently rolling out this new tool for underwriters to some select clients. If your underwriting department needs this kind of actionable risk analysis, contact us today.

Posted in Insurance, Underwriting, risk assessment | Leave a reply

Tracking tropical storm Alex's potential impact on insurance policies with SpatialKey

Posted on June 30, 2010 by admin

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Insurers and reinsurers alike are always on the lookout for tools that can provide them better predictive analysis and modeling of risk exposure, for example when faced with upcoming hurricanes, floods or other natural disasters. How will their policy portfolio be affected by a hurricane? Where should they dispatch local agents after a natural disaster? What level of reinsurance should they get when faced with new risk? All these decisions can make or break a company's bottom line as well as their customer service. Insurers use sophisticated modeling and forecasting tools to make decisions, but these tools are usually only accessible by trained analysts and getting reports takes hours if not days to receive.

With SpatialKey's SaaS platform, insurers can now finally bring together and analyze *on-the-fly* - not in hours or days as with other tools- a variety of data coming from different sources, and make immediate business decisions accordingly.

Take tropical storm Alex, expected to turn into a hurricane (thankfully heading away from the Gulf of Mexico oil spill) this Wednesday as an example. Since some of the predictive hurricane models are proprietary, we decided to use publicly available datasets of the hurricane's path at http://www.hurricanezone.net/#01l, as well as a mock sample of insurance policy to showcase how easy it was to import and analyze information using SpatialKey.

After downloading a shapefile containing the Tropical Storm ALEX 5-Day Track here, we easily imported it into SpatialKey and created a new report showing the potential 72 and 120 hour paths of the storm.

Tropical Storm ALEX 5-Day Track, Uncertainty Cone

Next we added our fictitious insurance company's policy data and overlayed it with the predictive hurricane's path. This allowed us to see in minutes, not days or hours, which policies in which geographies might be affected by Alex. Minutes vs days make a big difference- the quicker the information gets in the hands of decision makers within the insurance company, the quicker they can adjust their plans- for example where to dispatch local agents after a natural disaster.

Tropical Storm ALEX 5-Day Track, Uncertainty Cone with Policy files

SpatialKey shines by making complex data analysis simple and available to the people who need it the most.

Tropical Storm ALEX 5-Day Track, Uncertainty Cone with Policy files filtered

Within just a few minutes, no programming or analysts required, we imported the insurance policy data from a spreadsheet, shape files from the NOAA site and used the capabilities of SpatialKey to filter which policies could potentially be affected by the path of the storm. We could take this analysis further and forecast the impact of the storm on commercial vs home policies or per construction type. We could even import additional datasets, for example local demographics, for further insight. The analysis capabilities are endless. And the other benefit of SpatialKey is that the information (for example which policies are at the highest risk) can easily then be exported out of SpatialKey and shared within the organization for follow up. Or interactive reports containing the information above can be shared so that others on the team can further slice and dice it according to their analysis needs.

To find out how SpatialKey can help your insurance company, please visit here or contact us.

Posted in data import, examples, Insurance, Visualization, risk assessment | Leave a reply