Insurdata wins “Insurtech Initiative of the Year” Award
· Award presented at Insurance Day London Market Awards 2019
· Entries judged by independent panel of industry leaders
· Award recognises initiative predicted to have greatest impact on London market
We are delighted to announce that Insurdata has been awarded the “Insurtech Initiative of the Year” award at the Insurance Day London Market Awards 2019.
The shortlist for this award boasted some outstanding initiatives spanning critical aspects of the London insurance market. However, the judging panel, which was composed of leading industry figures from organisations including the LMA, Aon, BCG and the MGAA, believed that Insurdata stood out as the initiative which demonstrated the clearest innovation, provided the most significant opportunity to enhance business practices, and had the greatest potential to impact the London Market.
Commenting on the award success, Jason Futers, CEO, Insurdata, said: “This is a fantastic achievement for a company which only launched in 2017 and recognises the huge opportunity which Insurdata provides to address head-on the fundamental data resolution challenge which the insurance industry faces.
“The last 24 months have been a very busy period for Insurdata. We have secured strong backing for the platform, analysed, created and augmented live risk data for over 30 re/insurers, and made it through the stringent process of the Lloyd’s Lab as part of the Cohort 3 programme. It’s been an incredible two years.”
Jeremy Sterns, Chief Technology Officer, added “This award recognises the immense effort that the Insurdata team has made to turn the original idea of creating a platform that would enable the creation of high-resolution data at the individual exposure level into a fully functioning reality. We’re excited about what the future has in store and are looking forward to continuing to roll out our API to syndicates, (re)insurers, brokers and modellers working to improve their exposure data.
Insurdata and Canopius carry out exposure data resolution study
• Data modelled through Fathom’s flood model on the ModEx cat modelling platform
• Study reveals range of geocoding displacement
• Augmented data sets have marked impact on loss estimates
London, 26 February 2019 – Insurdata has today released the findings of a flood data study conducted with global speciality re/insurer Canopius, flood modelling firm Fathom and ModEx, a catastrophe modelling platform delivered by Simplitium.
The study focused on how augmented property exposure data altered the risk profile of an asset when modelled, and how the revised data sets would impact annual average loss forecasts and maximum event losses for a series of return periods.
“The main aim of the study,” explained Jason Futers, CEO, Insurdata, “was to establish the potential impact on loss estimates at both the individual property level and portfolio level when exposure data is modelled at a much higher resolution than currently available to many re/insurers.”
The sample data provided by Canopius represented a typical raw data set as available in the re/insurance market. The unaugmented address data was originally geocoded to a variety of resolutions from building to zip-code level.
The portfolio included data for approximately 1,000 properties in the Houston, Texas region, with a total insured value of $9.9bn spanning residential, commercial and industrial locations. Some locations had been impacted by the 2017 inland flooding resulting from Hurricane Harvey.
The initial phase of the study involved the creation of four specific data sets, the initial raw location data and three augmented sets which included updated geocode information, building perimeter points, and building attribute data, including first-floor elevation (FFE). These data sets were then modelled through Fathom’s high-resolution flood data model with average annual loss (AAL) and exceedance probability analysis conducted for all locations.
The geocode corrections saw a displacement of five metres or less for 384 exposures. 20 percent of the properties witnessed a geocode displacement of 50 metres or more, while 75 locations were displaced by one kilometre or more resulting in an overall location displacement of 276km for the portfolio. It should however be noted that not all original geocode data supplied was at street level.
Analysis of the augmented property data sets had a significant impact on the annual modelled loss figures:
• The revised geocodes (Set 2) resulted in an 84% increase in the loss estimate
• The addition of the building perimeter data (Set 3) reduced the increase to 76% compared to Set 1, or a 4% decline compared to Set 2
• The addition of the building attribute data, including FFE, (Set 4) saw a 2% decrease in the loss figure compared to Set 1, or a 44% decline compared to Set 3
In terms of the impact on the modelled estimates for the return period loss, for a 1-in-200-year event, the analysis revealed:
• Set 2 analysis resulted in a 42% increase in the estimated loss compared to Set 1
• Set 3 analysis saw an 11% decline compared to Set 2
• Set 4 analysis continued the downward trajectory with a further decline of 37% compared to Set 3
Commenting on the findings, Jason Futers, CEO, Insurdata, said: “As the analysis demonstrates, augmenting property location information with building perimeter data and first-floor elevation measurements, rather than relying upon a single geocode and a default FFE assumption, has a material impact on the modelled loss estimates.”
His comments were echoed by Dr Andrew Smith, Chief Operating Officer, Fathom, who said: “Flooding is one of the most spatially complex phenomena that insurers have to tackle, which makes the ability to map exposures accurately critical to their ability to robustly model such losses.” He continued: “There is no reason why re/insurers should not be using accurate geocode data in their risk analysis.”
Paul Wilkinson, Head of Catastrophe Management, Canopius, concluded: “Current market conditions and narrow profit margins are driving greater focus on risk differentiation and portfolio optimisation. The augmented data metrics generated in this study can help insurers improve risk selection and enhance portfolio makeup, support decision-making around risk quantification and policy conditions, and facilitate the development of new products and more flood-specific coverage. Canopius is fully committed to taking a leading position in efforts to enhance the resolution of the data which underpins our industry.”
A report on the findings entitled “Breaking down the flood data” is available here
INSURTECH-LED CHANGE IN THE LLOYD’S MARKET
Insurdata could become a “critical industry ‘utility’” according to the latest report on InsurTech change produced by Oxbow Partners and the London Market Association (LMA) for Lloyd’s Managing Agents.
The report, commissioned by the LMA, looks at why and how InsurTech is now relevant for corporate and specialty insurers and reinsurers, and provides some strategic ‘guiderails’ to help managing agents develop their response. Insurdata is one of 15 InsurTech firms highlighted in the report.
A copy of the full report is available to download from here.
Below is an extract from page 28 of the report which highlights Oxbow Partners’ View on Insurdata:
“Insurdata’s early pilots have generated results that have a material impact on (re)insurers’ underwriting. As long as the industry’s input data is of variable quality – something that is unlikely to improve soon as much of the data comes from policyholders’ own internal data on locations, which has not necessarily been collected for insurance purposes – companies like Insurdata will perform a useful role. We believe that Insurdata, with its experienced management team, could become a critical industry ‘utility’.”
BITESIZE IMPACT 25: INSURDATA REVIEW
Insurdata is the youngest company on Oxbow Partners Impact 25 list. Chris Sandilands, Partner of Oxbow Partners highlights the benefits that Insurdata offers to (re)insurers and brokers to improve insights used in underwriting, pricing, risk assessment and portfolio management in the firms monthly blog. The below is an extract from Chris’s article. The full piece is available to read here.
Insurdata recently concluded a pilot with reinsurer SCOR in Florida which revealed that 44% of properties (equating to 50% of total insured losses) were incorrectly geocoded in the existing dataset. Expected losses per location changed by up to 80% as a result of Insurdata repositioning. The pilot also revealed significant changes in both annualised and return period losses. Another pilot with a different company revealed that over 90% of locations were inaccurately geocoded at an average displacement in excess of 50m.
The technology scales to any portfolio size, but founder Jason Futers says Insurdata is most effective for addressing high impact issues (such as poor geocoding and the absence of first-floor elevation data) through a ‘data on demand’ service. He says the platform has the greatest perceived value at the point of underwriting.
Insurdata can be integrated via API, which Jason says will significantly reduce the time it takes for data to find its way through the value chain: some processes currently can take months of manual re-keying.
The platform is currently being used by clients based in the US and Europe. Jason says dozens of conversations with potential partners – including brokers, MGAs, insurers and reinsurers – are ongoing.
Insurdata says that for every dollar spent on its technology, users generate $13 of corrected technical premium for residential property, or $50 for commercial property.
The company received $1.3m in funding from partners including Anthemis and Plug and Play in October last year and is currently in advanced discussions for its next round. Headcount could as much as double to around 20 in the next 12 months to drive growth in multiple markets.
While the focus of the business is initially flood, the platform applications can be widened to other catastrophe events (e.g. terror) and to other impacts including infrastructure. Jason adds that Insurdata could be used for other coverages including parametric triggers in the future, and could support community responses to catastrophic events by advising on how and where new properties are built.
THE OXBOW PARTNERS VIEW
Insurdata was founded in 2017 and is the youngest company on the Impact 25. We included the company because the team is strong (Jason is ex RMS) and emerging results were impressive. This is a business that has come out of the gates quickly.
Exposure modelling is big business. Revenues of RMS, the leading loss modelling platform, were £233m in 2017, and Jason estimates that the total exposure-based (re)insurance analytics market is close to $1bn. (Re)insurers’ investment in modelling infrastructure and capabilities, for example the Oasis framework, suggests that investment in improved risk insight will continue for years to come.
The full article is available to read here
Thanks to Chris Sandilands and the team at Oxbow Partners for publishing their article in Oxbow Partner’s June 2018 blog.
For further information contact Jason Futers on firstname.lastname@example.org