INSURANCE
numerous challenges in accessing vital data - but new innovations look set to change all that too .
Patrick Mottram , senior director of risk , analytics and insurance at Precisely , explains , “ As the climate crisis worsens , major weather related events account for billions of dollars ’ worth of claims every year . By assessing historical weather patterns and their subsequent damage , insurance companies can predict the likelihood of impending weather events with a high level of accuracy .”
This enriched data , he says , can in turn help insurers understand the relative damage caused by weather-related events such as tornadoes , floods , hailstorms and other severe events in specific areas .
“ For example , in 2017 California had one of the worst years on record for wildfires and the damaging effects were extensive . Following the event , we sampled 100 properties , which resulted in over $ 100mn worth of claims . Based on our analysis , merely 3 % of those properties had previously been identified as being at high risk from wildfires . In reality , between half and threequarters of those properties would have been identified as high risk if the insurer had used accurate location data .”
He continues , “ Companies still rely on paper-based methods , slow-moving systems and inefficient assessment methods , and this holds up what could be a much smoother process for both the insurer and their client . But if insurers think outside the box , embracing opportunities to use AI and earth observation tech , they save themselves time and money .”
“BY IMPROVING DATA INTEGRITY , COMPANIES CAN INCREASE PROFITABILITY ”
PATRICK MOTTRAM PRECISELY
The future of risk assessment In such a fast-paced environment , change occurs almost daily . The insurance industry hasn ’ t always been open to change though , and is often considered a slow mover when it comes to adopting new systems and technologies .
Attar says times are swiftly changing and only those open to innovation will succeed . “ The insurance industry , particularly the property and casualty sector , has been slow to innovate when it comes to new technology .”
50 January 2022