Property and insurance company targets location accuracy to lower policy risks and improve pricing
When this property-and-casualty (P&C) insurance leader replaced its outdated policy administration system with a third-party cloud solution, it needed a better way to determine exact property locations. Geographic precision allows the insurer to view where policies are located, down to the parcel- or building-level, providing information such as their proximity to different kinds of risk. With this information, insurers are ready to generate more accurately priced policies. While adding this step to their internal processes, this information also needed to seamlessly integrate into the new policy administration system.
The insurer’s legacy geolocation software vendor was able to provide information at the parcel (lot boundary) level only about 50 percent of the time. Often the solution assigned a location only to the block or ZIP Code level. Without more precision, the insurer could either underprice a policy, which resulted in undue risk, or overprice policies, which might result in lost business. The insurance company needed its new policy administration system to incorporate highly precise location information. It also wanted to enrich its internal data with externally available data sources to support more accurate risk assessments