19 August 2014 Insurance

Poor boundary data can sting re/insurers

Re/insurers risk under-charging for certain perils and getting stung by higher than expected claims if they base the assumptions in their catastrophe models on inaccurate or outdated data.

That is the message from executives from GfK, a digital map and data provider, who warns that many big industry players are still basing their assumptions on risk models that use boundary data that is not of an adequate quality.

To register for this free event, please click here

The problem will be the subject of a free webinar delivered by GfK and Intelligent Insurer on September 3. Details of the event can be found below.

By using inadequate data, re/insurers and brokers run the risk of discrepancies emerging between the risks they think they are pricing versus the way claims actually unfold. When the effect is repeated across a large geographical area, the difference can become substantial.

“Any risk model is only as good as the data on which it is built – if there are inaccuracies in the boundary data, there will be inaccuracies in the model,” said Christopher Guider, marketing manager at GfK.

“Large discrepancies can emerge when calculating premiums or processing claims based on outdated or incorrectly digitized postal or admin boundaries. This, in turn, results in losses and inefficiencies that are entirely avoidable with good boundary data.”

GfK is also the official supplier of the digital CRESTA zone maps. CRESTA zones, backed by Munich Re and Swiss Re, provide a universal standard for the exchange of aggregated, insurance-related information among insurers and reinsurers. The CRESTA zones underwent a major reform in 2013 and now provide coverage of 137 countries worldwide as well as two resolution levels.

The webinar in September will also feature several case studies by Aon Benfield Impact Forecasting, which show how this type of boundary data is used in creating risk models and its importance.

“Our boundary data is specially designed for reinsurance applications, with global coverage and a very high level of detail, particularly along coastlines where high-value assets tend to be concentrated” says Guider. “GfK’s postal, admin and CRESTA zone boundaries fit together seamlessly, without any gaps or overlaps, which is an essential requirement when using boundary data as a basis of analysis and reporting.”

To register for this webinar, please  click here. 

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk