Large-scale use of location data is a cornerstone of the insurance industry. It touches virtually every aspect of the business, from risk assessment and underwriting to claims and customer acquisition.
Insurance companies today have more location-based data available to them than ever — yet operationalising that data across the business remains a significant challenge.
THE RACE FOR ACCURATE DATA
What companies want is accurate and complete data that gives them a reliable view of risk for a single property or for an entire building or neighbourhood, or an aggregated view of risk across the enterprise.
But what most companies today have is imprecise data based on an estimate of the actual location.
Moreover, the data is trapped in siloed lines of business and disparate legacy systems, making a single version of truth about a property or a building extremely difficult to acquire.
REDUCE RISK INCREASE PROFITS
In collaboration with Pitney Bowes, Harvard Business Review Analytic Services surveyed industry experts and analysts about the state of location intelligence in the insurance industry.
The findings confirm that the opportunities to reduce risk and increase profits by improving the accuracy of location data and managing it effectively are significant.
LOCATION MASTER DATA MANAGEMENT
Consider how evaluating cumulative risk in a single multiuse building such as an urban high-rise depends on consolidating data across multiple business lines within a company.
Small businesses such as retailers and restaurants on the first floor, large enterprise commercial for the major chain hotel on the next 10 floors, and personal lines for the condos on the remaining floors.
That takes location master data management (MDM).
In this whitepaper, you’ll find other examples of how location MDM strategies are helping insurers understand exposures, reduce risk, and increase profitability.
The report also explores new data sources and new technologies, such as internet of things (IoT) devices and their impact on the business. All this new data will only put a higher premium on the ability to master location data.