Mind the gap: Using external data to reduce pricing disparity in property underwriting
Is there a definitive price for a given insurance risk?
The demand to explore data analytics and use it to support property underwriting suggests yes. But the variance in pricing from insurers shows there is still some way to go before we reach a consensus on premium.
Business cycles, commercial pressures and underwriting strategies all influence pricing, and so the same risk will always attract different premiums from the market. But the gap between the cheapest and most expensive quotes seems to be widening.
To uncover the key challenges faced by property underwriters and the tools being used to manage property risks, Post in association with Verisk recently surveyed 73 front-line specialists.
This report sheds light on how successful insurers are using external data to support property underwriting and reveals a widening gap between those that are investing in data and technology and those that are sitting on their hands and getting left behind.
Topics covered:
• Top three challenges faced by property underwriters.
• Claims trends for specific perils.
• External data sources currently being used.
• Planned usage of external data sources in the future.
• Perils impacting pricing/underwriting property risks in the next two years.
• Leveraging external data to improve pricing.
• The importance of accessing granular data to manage risks.