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