With many insurers re-examining their approach to risk to ensure Solvency II compliance, there is a growing demand for greater precision in identifying individual risk locations and their associated exposures.
The Association of British Insurers (ABI) estimates that undetected general insurance claims fraud totals £2.1 billion a year, and as such, insurers are seeking more robust ways to fight fraud. On top of the need to make savings when paying out claims to improve loss ratios.
Detected insurance fraud now £1.1 billion, combined with undetected fraud, adds an average of £50 to the cost of premiums for every UK household (source: ABI).
Efficiency savings can be gained using our mapping data to tackle these demands on the business in isolation; however greater value can be achieved when insurers use location intelligence across their business – to underpin compliance, underwriting, claims and fraud.
- Legislation - Solvency II legislation requires insurers and reinsurers to accurately manage their risk portfolios.
- Increased insurance fraud – a 9% increase in the last year, adding an average of £44 to the cost of premiums (source: ABI).
- Accuracy of accumulation reporting - due to several systems or even locations involved in the process.
- Greater need to be able to accurately model flood risks within your portfolio to keep up with the competition.
- Customer pressure – to speed up claim decision during disaster-level events.
- Dealing with the volume of claims effectively during disaster/surge events.
- Competitor communication – competitors using claims handling efficiencies as key message to differentiate their service.
- Identify ways of increasing profitable revenue by optimising sales territories and using targeted marketing.
Location intelligence can enable you to:
- Pinpoint the location of your polices at individual address level and identify risk at a precise location using the most up to date and accurate location and height data across the whole of Great Britain.
- Identify the potential impacts of different types of risks and perils using scenario modelling to improve contingency planning and more accurately calculate your re-insurance cover.
- Build a thorough understanding of accumulated risk within given locations or areas to identify hotspots and trends.
- Accelerate the evaluation, investigation and settlement of claims using location intelligence integrated with claims management solutions, ultimately improving speed of the claims decision for the policyholder.
- Immediately know your exposure to a peril during a disaster-level event and visualise damage zones, including evaluation of evacuation routes.
- Reflect claims history in the rating and pricing process.
The benefits of using our location data such as our AddressBase products include:
- Greater and faster return on investment when using our data across several departments.
- Re-insurance premiums reduced.
- Improved loss ratio by repudiating fraudulent claims.
- Improved event modelling and loss predictions.
- Better management of risk exposure when underwriting at individual address level rather than postcode banding.
- Accurate pricing of policies - 26.7% increase in the amount of properties correctly identified in the flood risk zone compared to postcode banding.
- Enhanced acquisition of profitable business through targeted cross and up selling marketing campaigns, reducing overheads.
- Quicker and more accurate calculations of exposure to a peril/event to reassure shareholders.
- Increased revenue and profit through the identification and management of opportunities & challenges.
- Ability to negotiate balance sheet protection.
- Provide a more competitive service by handling claims faster.
- Improved customer satisfaction increasing loyalty.
- Surveying capacity improved by 180%.
Contact us for more information.