P&C underwriting requires enormous consideration to detail, now more than ever.
Carriers today are able to create unique surveys for gathering all sorts of information on a property before binding to a policy, such as if there is a trampoline in the yard or smart locks installed on the home.
Geocoding promises to inform the underwriting process with more accurate data relevant to the location’s history of perils. WaterStreet Company offers P&C Policy Administration Software that can bring this vital information into your system.
What is Geocoding?
Geocoding matches a location, such as an address, with geographical coordinates. These coordinates are precise in latitude and longitude.
Geocoding has been used by GPS devices for over a decade. This technology became mainstream with the rise of mobile devices and mapping solutions, such as Google Maps. Much of this data is now standardized and freely accessible.
Over time, as more geocoding data is recorded and improved, businesses are able to identify trends to use geocoded data to its full potential.
Geocoding for P&C Insurance
Insurance geocoding allows insurers to more accurately weigh risk for a property based on location. When a carrier is able to review the exact geographical location of a property, it is also possible to review nearby hazards and historical information on the perils that may have occurred at the location.
For example, flooding is a peril that comes with high costs of damage. Carriers that rate by peril may value geocoding that can more accurately determine if a property is a flood risk. The risk of flooding can vary drastically between properties in the same area and comes down to many factors. Geocoding can precisely pinpoint geographical data down to just a few feet in difference, which could be the defining factor in pricing when underwriting for a home.
Geocoding is offered by a variety of third-party vendors, such as HazardHub who specialize in this field of risk management. For example, HazardHub offers a free property risk assessment tool that allows people to understand the risks associated with their property based on their location. Tools like this help carriers make better underwriting decisions as well as educate the insured on the risks for which they should have coverage.
WaterStreet Company & Geocoding
Not all insurers can take advantage of geocoding so easily.
The most adaptable, cloud-based solutions are positioned to take full advantage of this unique data. WaterStreet Company is built with a robust API, allowing our P&C Policy Administration Solution to connect to any number of third-party vendors that offer geocoding.
Geocoding requires near-constant updates for new housing developments, updated postal codes and expanded rural properties. As geocoding evolves to pair more location data with historical trends, such as wildfires, hurricanes, derechos, and more perils, carriers are able to compare and upgrade their integrations to gain the most valuable data. Competition between geocoding solutions brings a variety of perspectives to how this data can be applied for insurance.
The dynamic uses behind geocoding allows carriers to continue thinking outside the box and crafting more unique, innovative offerings.
Reach out to WaterStreet Company today to request a consultation and demo of our solutions.