Underwriting Meets Geospatial Intelligence

WILDFIRE | FLOOD | EARTHQUAKE | SEVERE WEATHER

 

Improve Risk Selection, Identify Growth Opportunities & Reduce Losses by Harnessing Geospatial Intelligence

Profitably growing your book of business and minimizing losses starts with disciplined Saturation Management and taking advantage of your biggest asset, Capacity.  Spread of risk has proven itself as a best defense strategy, yet it’s often overlooked or reactively managed in today’s insurance environment because of lack of modern underwriting solutions. 

 

If you don’t see exactly where you are writing business and experiencing losses, how can you manage exposure, improve segmentation and price accurately?

 

Risk scoring, distance to hazard, and zip code based analysis are frequently used to assess risk exposure.  While these forms of analysis can generate useful insights, they can be flawed because they are imprecise, either by being too broad or narrow in their focus. For example, zip codes are not geographic boundaries, only a collection of routes used for postal delivery. When used in data analysis, they often mask real insights.

Geospatial Intelligence removes artificial boundaries, which empowers understanding, decision-making and prediction.

"We actually use the tool twofold. One way is to proactively reach out in the event of extreme weather, the other is from a risk-rating perspective, so we also use it as an underwriting tool in combination with the scoring methodology GIA Map provides."

Mike Gulla, Senior Director of Underwriting & Customer Support

Hippo Insurance

 

Using Geospatial Intelligence for Better Risk Management

Over the last few years, insurers have suffered significant losses in areas defined as “low-risk” due to inaccurate or outdated risk models. In addition, losses caused by wind-blown embers from wildfires, flooding outside of FEMA flood zones, and man-made disasters make it nearly impossible to predict the unpredictable using conventional industry models. Leveraging geospatial tools modernizes and simplifies the underwriting process by increasing precision - by using maps, overlaying active hazard events, historic events data and most importantly, company book of business details.

  

GIA Map was created to help auto, home, and commercial property insurers to quickly and easily measure and manage their exposure using geospatial analytics. Using finite location analysis helps eliminate oversaturation and helps proactively control growth in vulnerable areas.

 

Founded by industry veterans David Jowell and Alicia Naiman, GIA Map integrates natural hazard data, analytics, mapping, and book of business data to help insurers effectively manage their TIV and PIF Saturation for enhanced decision making. GIA Map helps:

  • Create customized buffers to automatically manage risk accumulations (TIV, PIF or aggregate limits) enabling carriers to make the law of large numbers work in their favor  

  • Boost underwriting and rating results through address level vulnerability scoring and in-force book of business saturation monitoring 

  • Identify most desirable growth areas to launch new products or marketing programs

  • Understand the impact of severe weather events at the portfolio and address level to more effectively deploy claims resources

 

A Sample of Our Clients and Industry Partners

Hippo Insurance
LSI Insurance Services
CARFAX

"LSI Insurance Services has been a GIA Map customer since early 2017. GIA has become instrumental in the operation of our boutique wholesale property insurance business. When dreaded wildfire erupts, the live fire data layers assist in swiftly identifying properties at risk as well as setting sensible moratoriums."

Morgan Kern, EVP

LSI Insurance Services, Inc.

GIA Map Datasets & Insights

CAT losses are expected to increase due to multiple factors; urban expansion in vulnerable areas, denser forest fuels, climate change, and new homes increasing in size.

 

GIA Map helps property and auto insurers to effectively manage risk and proactively communicate with customers during severe weather events by providing real-time and historical map layers for 40 + natural hazard perils.  

Some of our most popular map layers include Prior Wildfire (dates back to 1800s), Flood, Hail, Tornado, Custom Territories, and our breakthrough Wildfire Vulnerability Score.  

 

A More Innovative Approach to Wildfire Underwriting

 

Many of today’s wildfire models were created by people who have never underwritten a policy or placed a risk.  GIA Map’s wildfire vulnerability score combines our CAT Management expertise, along with the accuracy of geospatial data.  This combination allows our customers to uncover new insights into wildfire risk and enables them to assess and price wildfire risk with more precision.  

 

GIA Map’s wildfire vulnerability scores and features are available through API, Web-based platform, and mobile application. 

The Impact of Geospatial Intelligence in P&C Insurance

How Can Geospatial Intelligence Help?

Geospatial intelligence can assist insurers throughout the customer cycle from Quoting through Claims response.  Insurers who use GIA Map’s geospatial intelligence may benefit in a variety of ways, including: 

 

 

  • Holistic Approach - First analyzing your active book of business and applying algorithms to return wildfire scoring and saturation results in minutes. Algorithms are based on your settings, not static models irrelevant to your appetite

 

  • Armed with the results data, you can identify and take necessary action on any policies, either due to high wildfire scoring or accumulation exceeding company, book or product limits

 

  • Use API to automatically and proactively manage accumulations to ensure the spread of risk, at time of quote and binding
     

  • Improve the agent and customer experience by applying insurer appetite settings at quote and moving submissions down the underwriting chain. Either by routing to an underwriter for review or declining new business due to underwriting moratoriums
     

  • Increase transparent communication between Management, Underwriting, Product, Claims and Marketing by providing a holistic map-based view of business 24/7/365
     

  • Deliver notifications about the company-specific impact of severe weather events at the address and portfolio level via automated alerts to underwriting and claims
     

  • Pinpoint and automatically create geofencing moratoriums for specified areas to pause new business instead of using broad-brush zip code lock-downs for weeks at a time

 

  • Help enhance the customer experience by sending automated messages to policyholders before first notice of loss (FNOL)

 

  • Claims Geo Studies – Find geographical trends where your claims are occurring

 

  • Identify new business opportunities in areas by highlighting indications to marketing and agents to show where rates have gone down or remained flat

What Makes GIA Map Unique?

We understand that every Insurance Company, MGA and Agency has its own unique set of needs, challenges, and ways of conducting business. We know this because we’ve been in your shoes before!  This is why GIA Map takes the time to listen, understand your company and use our 40+ years of insurance expertise to help solve your problems using geospatial intelligence. 

 

We’d love to hear about your current challenges to see if we can help.  To schedule a 15 minute complimentary consultation, contact us today at - solutions @ giamap.com.

 

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