Disrupting fire risk underwriting with a data-driven solution

| March 23, 2019

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A few facts to consider: fires account for 28% of non-catastrophic home insurance losses, but fewer than 3% of all homeowner claims. And when fires do happen, the average loss is more than $66,000. Unlike other types of homeowner losses, fire losses rely on a community’s fire response capabilities. These factors underscore the importance to Carriers of accurately measuring a community’s fire response proficiency. The ideal solution includes the ability to more precisely determine fire location, and incorporate other data points that impact response effectiveness, such as driving time, historic response time, or percentage of time spent by a fire department on medical or other non-fire events. Unlike other insurance perils, fire risk is typically classified with simple, non-analytic rules or expert opinions. A more effective tool in fire risk assessment is predictive analytics, which turns quantifiable data into actionable insights for more precise pricing and underwriting. A data-driven product can exceed even the best expert’s ability to offer consistent empirical results. The data products that exist don’t go beyond scoring fire-fighting preparedness and don’t employ a model that would help insurers optimize incremental performance.

Spotlight

Malayan Insurance Co., Inc

Malayan Insurance Co., Inc. is the leading non-life insurance company in the Philippines. Founded in 1930, Malayan offers its client and the public guaranteed peace of mind through service excellence, quality insurance protection, and the prompt processing and settlement of just and valid claims.

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Spotlight

Malayan Insurance Co., Inc

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