We all know as consumers of insurance, that insurers give us piece of mind and provide us with protection against damage which we may incur for any number of reasons, but especially events, including catastrophic events or natural disasters which we are very accustomed to here in Australia.
I am particularly moved by the distressing scenes we are currently seeing across the east coast of Australia, with the widespread flooding and the devastation and damage which these flood waters are causing to both residents and businesses in many areas of the country.
It is the ongoing impact that will be felt in the aftermath of these floods with the affect continuing long after the floodwaters have subsided. It is times such as these that insurers are on call and see a dramatic increase in demand, and this increase in demand also means a significant impact to their business, their margins and their capital reserves if the amount set aside for events such as these has been exhausted once the demand eases.
Location intelligence provides invaluable intelligence and insight for insurers, enabling them to understand their current exposure, model for potential future perils and re-evaluate based on recent catastrophic events to ensure that they are not over exposed for any potential events in the future. As we know, natural disasters are absolutely unavoidable, but for insurers, there are many ways that they can prepare and plan to ensure that the impact to their business is as minimal as possible, and location intelligence and GIS technology is essential tool for this kit!
Watch this short 2 minute video to see how location intelligence can be utilised to assist with modelling flood and effective pricing strategies.