In July we invited a select group of our insurance customers to join us aboard HMS Belfast in London for our first customer forum. Our aim for the forum was to share best practice of using mapping and addressing data for underwriting property insurance, whilst at the same time allowing the attendees to not only meet and network with peers, but also share discussion on key points bought up by the presenters. The format seemed to work – with customers welcoming the debate and discussion the agenda offered.
During the morning we heard from David Williams, Managing Director, Underwriting, AXA, who talked about how AXA use our data in their underwriting systems, for both commercial and personal lines property insurance. Our addressing data is used by every one of their commercial underwriters to accurately price the risk they underwrite, monitor accumulation in any given area and help reduce re-insurance premiums. It’s also used during the automated process of underwriting personal lines. He covered some of the lessons that AXA learnt during recent flooding events making the point that insurers should not only focus on the claim, but also make sure claims data is used to inform underwriting. David also explains the importance of using accurate data, and how the use of data analytics is becoming ever more competitive; if you don’t do it, your competitor will. He makes the point that you require an underpinning dataset to make sense of the huge amounts of data becoming available now – and geographic data is best suited to do so.
Richard Ellis, Commercial Pricing Director at LV= explained how LV= use AddressBase Premium for their commercial underwriting system, and how they are looking to potentially use geographic data and analytics to better predict losses on their commercial motor, commercial property or even liability businesses. There are 20,000 datasets available and the trick is finding the ones that might be predictable; the ultimate goal of finding out information about the risk you didn’t necessarily know before.
Then Mark Shepherd, Policy Adviser at ABI gave an overview of the latest developments of Flood Re. He described how the Flood Re will be a standalone legal entity, re-insurance pool. It will be funded by two levy’s (£10.50 on every household policy and a second capital call if required during large flood events). Mark also explained what it will mean for insurance customers, including the price of the flood risk cover for these properties, the fixed excess of £250 and the types of properties currently excluded.
Phil Wyndham wraps up the video by explaining how the Unique Property Reference Number (UPRN) along with the Valuation Office Agency’s council tax banding data will be shared with the industry as part of the Flood Re scheme, to enable insurers to decide which properties to cede into the scheme. Phil also challenges insurers to ask Ordnance Survey for their data requirements, whether they are geographic or government data; we’ll then use our relationships to get access to that data and develop a solution to rise to those challenges.