Nigel Lester, Managing Director, ANZ, Pitney Bowes Software
Insurers have long used location intelligence to manage risk management and deliver superior customer service. Today, market leaders are using data that’s more accurate than ever to gain more precise insights about risk, location and customer behaviors that lead to better business decisions. As you look to identify, attract and retain more profitable customers, start by increasing the value of your data.
This process, known as GeoEnrichment, taps into an abundant assortment of information connected via more accurate addresses. It allows insurers to make this information available throughout their organizations so they can efficiently inform underwriting and actuarial activities, improve customer engagement and gain a competitive edge. Here, accurate, location-based information delivers precise insights that drive business outcomes.
Where insurers once relied on approximate property locations, now they can access a global library of over 350 geospatial data products- including demographics, points of interest and industry-specific data for over 240 countries and territories. Where they once relied on spreadsheets, now they can analyse opportunities and risks via powerful interactive mapping and visualization capabilities. By honing in on specific risk factors and customer demographics, it becomes possible to identify market opportunities and price policies with extraordinary precision.
Advances in location intelligence and GeoEnrichment make these insights more accessible. Now, with the right tools, you can assess a more factual level of risk associated with every application and renewal:
- Incorporate details on the property owner, zoning, land use and condition.
- Know the exact square footage, plus the number and type of rooms.
- Pinpoint the risk of perils such as flood, wind, explosion, and wildfire.
- Calculate the exact distance from coastlines, flood plains, fire hydrants and more.
- Assess crime rates, accident trends and historical traffic patterns.
- Validate consumer profiles, including marital status, occupation and the presence of younger drivers.
Embracing Master Location Data
Underlying these advances is an extraordinary new approach to GeoEnrichment. By starting with the best geocoding sources, deriving an accurate coordinate pair for each property, and then augmenting the results with a wealth of data, a new Master Location Data dataset is born.
Consistently updated and continuously improved, Master Location Data raises the level of reliability and precision available to the industry. Now, you can easily access appended demographic, geographic and risk data. Map that to internal data within and across sources, and it becomes possible to gain robust insight into individual and market opportunities.
- Pricing. Enhance your ability to price precisely based on the risk associated with a specific applicant or property.
- Targeting. Identify and proactively market to pockets of opportunities in the otherwise high-risk environments that less knowledgeable competitors may avoid.
- Engagement. Reach out to customers in advance of a catastrophic event to limit or reduce potential losses.
- Management. Optimize deployment and respond quickly to claims.
- Exposure. See your entire portfolio through the same lens, with enriched insight that can help you more effectively balance risk.
Analytics and autos
With near-instant access to location analytics, insurers can capitalize on new technologies and data. Through telematics, for example, insurers can assess and price automobile coverage using each individual driver’s own performance data. Underwriting can hone in on how fast a person goes and stops, where they drive, how much they drive, and other factors that impact risk. Rather than depending simply on an age, address and prior driving record, risk-based pricing can be tied more closely to the individual driver’s habits and skills. Customers can “opt-in” for this type of pricing and, by meeting driving criteria, benefit from better rates. It’s a matter of tapping into a wealth of traditional and near real-time data input through GeoEnrichment.
Location Data Trending
There is a surge of interest in location data from developers building customer-facing applications to teams striving to manage risk, improve customer service and deliver superior customer experiences.
Location intelligence is a game-changer and those who harness this data effectively are already winning in the global marketplace.