Swiss Re hosted a Geo Risk seminar in London on 6 September organised by Esri, one of the leading organizations in Location Technology, to discuss the opportunities that Geo Intelligence, or Geoint, (i.e. the practice of using maps and satellite data to understand relationships, patterns, and trends) provides to improve specific business processes in risk and portfolio management.
More than 100 experts, risk managers and vendors gathered at the Gherkin, proving that Geoint is a hot topic. The conference presented an impressive number of tools that relied heavily on maps and charts (instead of text and tables, see for example CatNet, which is Swiss Re's geo risk tools to survey exposure from natural hazards), and always focused on the insured locations. The presentations are available online. If you are interested in what the speakers said afterwards, please click here. [video link]
Why are such insured portfolio related tools only now growing in usage?
Geo intelligence in insurance requires exact location information, i.e. a geographic coordinates of a building or the footprint of a site. A Swiss Re analysis showed that more than 80% of insured property values are now fully geo-encoded, meaning that a (postal) address description is transformed to a location on the Earth's surface.
Only a few markets, mainly in Latin America or Africa, are at the very beginning of this process. Combining location information with other geo-related data like hazard zones or event impacts, political risk data, and insurance penetration, serves many business reasons. Accumulation control, impact assessment of catastrophic events, and market penetration analysis are only a few examples. Not to forget that a new family of web-based insurance products could be based on the technology as well.
Value of geo intelligence
Tools based on Geoint have the potential to steer and manage any of the tasks listed above. Maps are more intuitive than complex numerical data, and zooming into a map to locate any details is more efficient than scrolling through pages of a large reports. Having your own, single insured location data base at hand and combining this with your own as well as shared geo data is even more cost efficient than numerous independent processes.
But what do you think? Do you have any experience with Geoint?
Category: Climate/natural disasters
Location: London, United Kingdom