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Location in Insurance Risk Management
Maximize exposure, minimize risk
In evaluating risk exposure, some insurance carriers will set caps for given counties or regions to minimize potential catastrophic claims. For example, a carrier may decide to underwrite only a certain dollar volume of business in a county near the coastline. But in doing this, the carrier may be ignoring the fact that a large part of the same county is far enough away from the coast that it isn’t actually in a high-risk area.
Location intelligence solutions can show the exact location of any address with regard to coastlines, fault lines, flood zones, and other potential hazards. In many cases, a carrier can use maps to significantly increase its business in areas once thought capped.
Settle disputes regarding the exact location of a property
When a dispute arises over the exact location of a property, particularly with regard to risk factors, insurance companies can use MapInfo solutions as authoritative geo-verification resources.
Because the information is digital, precise, and presented visually, property owners, mortgage companies, and others involved in disputes can readily agree on locations and come to prompt decisions.
Solutions for Claims and Catastrophe Response
Mapping visualization in the claims call-center has many benefits to the carrier as well as the insured.
A primary benefit to the insurance company is the ability to quickly discern resources closest to the claimant.
As an example, an auto insurer can locate certified repair shops closest to the insured and direct them to the most cost-beneficial location.
MapInfo provides the ability to add mapping to any claims handling application. Most claims processing applications do not offer a mapping option. MapInfo is able to integrate with software makers such as Siebel®, Oracle® or The Innovation Group®.
Mapping solutions can be particularly beneficial when an insurance company must respond to a catastrophe. MapInfo can be used to help establish temporary claims offices in the field and locate them in areas that will serve the most policyholders most efficiently. Maps can be generated that help adjusters identify the policyholders hardest hit by the disaster and prioritize meeting their needs. In some cases, insurers have even generated street-level maps of disaster areas to help adjusters find the locations of buildings that had collapsed, blown away or become damaged beyond recognition.
Location Intelligence Solutions for Marketing and Strategic Planning
In addition to all of the ways mapping solutions can streamline operations, save money, boost productivity, and expedite the flow of information, location intelligence solutions can also help insurance companies develop new products, bring them to market and plan for the future.
Profiling an existing customer base
With a customer profile for a specific product, the company can then use location intelligence solutions to overlay demographic data such as age, occupation, household income, and more onto maps in order to find other areas with a similar demographic profile. Or, to target and cross-sell existing policyholders the company’s other products.
Generating demographic reports for key geographies
When an insurance company is looking to grow, what’s the best way to assess the potential of new geographic areas? With location intelligence solutions, carriers can accurately locate regions with high sales potential by overlaying demographic data.
By also incorporating information about the presence of competitors in these areas, insurance providers can identify and prioritize the areas with the highest potential—and allocate resources accordingly.
Locating potential customers for commercial lines
As the science of risk management develops, insurance professionals are becoming more adept at creating coverage specifically to serve the needs of commercial niche markets. Location intelligence solutions can help insurers determine when and where to introduce niche products by identifying potential customers and matching them with sales channels.
Assessing and adjusting agent penetration
How do you know when you have too many—or too few—agents in a given geographic territory? Location intelligence solutions can provide the answer in a format that’s easy to understand and interpret. With location intelligence solutions, gaps and significant overlaps in agent penetration become visual; you can actually see territories in a way you can’t in a table or list of data.
Maps are also excellent for illustrating sales patterns; the knowledge gained from maps can be used to create and direct motivational programs, refocus sales into more productive areas, or restructure an entire sales organization.
Gauging competitive penetration
Property and Casualty markets in general are more competitive than they’ve ever been and carriers must be aware of challenges from competitors. Location intelligence solutions allow insurance companies to visualize the competition’s penetration into key geographic and demographic markets and make the necessary adjustments. For example, minimizing sales efforts and resources in areas with strong competition—or making a stronger push into areas in which the competition is vulnerable.
Helping agents in the field
Maps can be as valuable to agents in the field as they are to insurance carriers. Salespeople can easily use maps to show customers how risk factors could impact their businesses, where their employees live, and more. Maps can help agents prospect for new customers for commercial lines and identify demographic characteristics to push sales of individual lines. With low-priced software that’s easy to learn and use, MapInfo solutions are easy and inexpensive to deploy throughout a sales organization.
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