True location intelligence solutions should allow underwriters to more accurately assess risk at the individual property level, resulting in higher quality underwriting, more profitable business and cost savings through reduced claims. Proper risk assessment starts at the point of sale. In the case of personal and commercial properties, that involves the validation and cleansing of addresses. Location intelligence solutions allow insurers to quickly validate the accuracy of new addresses or addresses currently on file for existing policyholders.
For example, DMTI Spatial’s unique address identifier (UAID®) assigns precise geographic coordinates to every address for Canada with rooftop precision. Address cleaning and geocoding are the essential beginnings of the policy lifecycle.
It is not enough to know the correct address – underwriters need real-time access to the risks associated with that particular property. It is imperative for insurance companies to have a complete and accurate picture of the risks that surround the property, such as geographic (rivers, fault lines) or man-made (highways, railroads) features. This will allow them to rate the policy correctly and also to determine whether or not they want to assume the risk. Underwriters can quickly assess multiple risk factors for any given address.
Location intelligence solutions, which combine geocoded address records with databases, provide the most granular and accurate information related to an individual property and its associated exposures. They allow insurers to organize, manage and analyze extremely large datasets to measure exposures by proximity to known hazards. Just as importantly, it allows underwriters to visualize these locations and risks on an intuitive map.
To learn more, download our Whitepaper: Property & Casualty Insurance – Getting Risk Right