Use Of Geospatial Tools And Data For Underwriting And Claims - Turkish Insurance Conference on Technology Advances For Underwriting And Claims - Matthew Eagle (2015)

1. Use of geospatial tools and data for Underwriting and Claims
Turkish Insurance Conference on Technology Advances for Underwriting
and Claims
8th October2015
Matthew Eagle

2. Overview
• Insurers seek to maximise profitability – what data and tools can help to reduce the
loss ratio and manage accumulations
• Losses generated from a range of sources
– For some of these geospatial data can help to assess risk of individual locations
– For example this is already being done using seismic risk hazard maps to set EQ tariffs
• Geospatial analysis is also useful for monitoring portfolio accumulations and
aggregation
• Also useful for Catastrophe Event response planning and post-event claims
management
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3. How the tools are embedded into underwriting will vary by line of
business
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• Homeowners/Residential policies
– Insurers will look to build the risk into the premium/tariff
– Allows policy to easily quoted and sold through a range of sources
including agents, banks, direct and on-line
• Larger Commercial and Industrial risks
– Underwriters will usually have more time to evaluate risk
– Mapping and analysing the risk becomes more useful
• We will consider a number of examples
– Mapping and calculating accumulations
– Overlaying hazard layers
– Satellite data
– Drones (UAV - Unmanned Aerial Vehicle)

4. MONITORING ACCUMULATIONS
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5. Mapping your existing portfolio
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6. Zooming into a risk more closely
Using Satellite and Street view to look at location
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7. Point Accumulation around a single location
For example a potential blast or terrorism target
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8. Accumulation within a zone
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9. Polyline Accumulation within a zone around a line – for example a EQ
fault line or a coastal area
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10. HAZARD AND UNDERWRITING
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11. Geocoding and Mapping individual sites
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12. What other risks do we have in the area around this location?
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13. Is this location at risk from flood?
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14. What is my total exposure in a section of the flood area?
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15. What is my total exposure in a section of the flood area?
Example taken from floods in Dallas, USA
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16. Earthquake
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17. Earthquake
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18. CLAIMS MANAGEMENT
USE OF DATA AND IMAGES
FROM SATELLITE AND DRONES
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19. How can satellite data help?
• Tianjin Port Explosion – 12th August
2015
• Access to the site after the event was
restricted because of concerns around
hazardous chemicals
• Satellites provided a early view of
disaster impact zone enabling:
– Integration of landuse mapping with
International Trade Database (ITDB) to
estimate potential loss
– Vehicle count
– Property damage assessment
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20. Satellite Event Timeline
• Pre-event imagery captures
pre-event land-use and
cargo inventory
• Post-event imagery from +1-
day partially obscured by
smoke
• Post-event +4 day image is
smoke free and clearly
shows impact area
• Bright white areas of the
image are due to the sun
reflecting off residue water
from firefighting efforts and
fallen glass/debris.
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21. Use imagery to identify land use within the port
• We can use the
imagery to
clearly identify
container
storage, vehicle
storage and
other risks
within the blast
area
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22. Combining Ground and satellite views
• Containers
impacted
by the
explosion
(Images: Wall
Street Journal and
Reuters)
• Vehicles
impacted
by
explosion
(Images: Reuters)
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23. Satellite Imagery used to detect the level of property damage
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24. Assessing levels of damage relative to distance from blast
Apply different damage ratios depending on damage level
• Level 4 = No visible
damage to the building
• Level 3 = Structure and
roof looks intact, but visible
debris around the building
• Level 2 = Visible roof
damage and debrisaround
the building
• Level 1 = Building
completely destroyed or
has major structural
damage
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25. Used satellite imagery to estimate vehicle counts
• Able to identify
vehicle storage and
production areas
within port, showing
vehicle counts for
each location
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26. Satellites provided first view – Later Drone imagery helps to asses post
event activity – in this case a total clean up of site
Post-event satellite + 3 days
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1 month clearance complete
Source: Cunningham Lindsey
Source: Reuters
Source: Marsh Risk Consulting

27. And look what is happening now!
1 month clearance complete
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Currently re-landscaping
Source: Cunningham Lindsey Source: Marsh Risk Consulting

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Drone Deployment for Loss and Claims Assessment
Malaysia Floods Dec 2014 – Jan 2015

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Drone Deployment for Loss and Claims Assessment
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Drone footage captured at peak flood in
Malaysia to develop a flood footprint

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This example shows Drone
footage following Nepal
Earthquake April 2015
Drones increasingly deployed for loss & claims
Potential to speed up post cat claims assessment
Safe and fast access for rooftop inspections

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Summary
• Benefits of geospatial data and risk analysis becoming clear
• Both for Underwriting, portfolio management and claims management
• Many providers of hazard data such as flood, and of tools for mapping and
analysing data
• Also increasing number of initiatives to look at wider use of satellite and drones
• Insurers do need to consider technology aspects of how to integrate this data into
their processes and systems
• How is the data available to underwriters at the ‘point-of-sale’
• How to handle capture and integrate live feeds
• Cost benefit analysis required – what does it cost to ensure the data is available
when you need it?
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