CoreLogic, a catastrophe risk modelling specialist, has made available two property insurance solutions developed by geographic research and data mining firm Location, Inc. that assess non-weather-related water and fire risk.
WaterRisk and FireRisk will allow CoreLogic’s clients to more accurately quantify the likelihood and severity of damage from water and fire by utilising 2 billion data points across the U.S and by creating geospatial risk models to generate over 11 million points of risk.
The solutions will apply advanced predictive analytics that consider factors like appliances, systems, wiring, structures, climate, and geographical location.
Non-weather-related incidents currently account for around 20% of all water-related homeowner insurance losses in the U.S and 84% of home structure fires, but re/insurers have previously been unable to analyse these hazards due to lack of consistent and complete data.
Both new products will now identify precise, measurable data on previously unquantifiable factors like poorly maintained properties, improper storage of flammable materials, or plumbing system failures.
They will support complete U.S coverage at the individual block level, and will offer 300 times more granularity into specific property risk factors than the average ZIP code analysis can provide.
Steve Brewer, Executive, Insurance and Spatial Solutions at CoreLogic, explained: “Historically, insurance risk has been calculated primarily through the analysis of natural hazard risks such as hail, flood, wildfire and storm surge, without the inclusion of non-weather hazards.
“With WaterRisk and FireRisk, insurers are now empowered with these previously unaccounted-for quantifiers of risk to more accurately underwrite and price policies commensurate with real risk. We are proud to offer our clients the missing piece – the only non-weather-related solution for the insurance industry that uses measurable data to holistically assess structural risk.”
Andrew Schiller, Chief Executive Officer (CEO) at Location, Inc., added: “We are passionate about building data sets and uncovering sources where no other company can.
“WaterRisk and FireRisk represent an enormous opportunity for the property insurance industry to improve accuracy and outcomes. We have had strong results testing with carriers nationwide, are excited about the use cases we are already seeing with clients.”
