The risk and exposure data which the re/insurance industry currently relies upon is woefully insufficient.
This is particularly relevant for high-resolution risks such as flood. If the geocoding or footprint information for a property in a flood-prone area is incorrect by even a few metres, that could materially impact losses for all types of flooding. Extrapolate such inaccuracies up to portfolio level and the volatility and impact on capital is material.
This lack of data quality, accuracy and completeness is amplified by the availability of high-resolution models. Advancements in modelling driven by high-performance computing systems and improved analytical capabilities have limited value without the refined data needed to capitalise on them.
At Insurdata, we have set ourselves a challenge. That is to bring greater clarity to our clients’ underwriting process and portfolio composition by providing peril-specific, current, accurate data at the highest resolution, globally and for all perils and lines of business.
By having access to highly refined data at the most relevant point, re/insurers have increased confidence in modelled loss estimates resulting in better risk selection and improved portfolio management. This supports better, more accurately priced products, more resilient balance sheets and ultimately reduced volatility at both the company and the industry level.