Accurate data a valuable aid for insurers

Lightstone, provider of comprehensive data, analytics and systems on automotive, property and business assets, places emphasis on the fact that the right kind of data can make all the difference.

Speaking at the Acord Insurance Conference which was held on 25 July 2014, Jasper van Heesch, head of business development at Lightstone, noted how the right data has helped their clients in valuable ways. "It is important for brokers, insurers and system providers to understand the tremendous need for quality data and support initiatives when it comes to their day to day business dealings. We have developed ways of getting the right data in, in the right way," says Van Heesch.

Increasing pressure

The competitive, solvency, and profitability pressures increasingly being felt by insurers and brokers drives them to seek data solutions that help price risk assets with greater granularity and certainty. It is also necessary for them to understand their clients risk profiles more accurately and to remove unnecessary operational steps.

Getting the data right helps multiple parts of the insurance value chain. Obtaining an accurate understanding of the profile of an insurer's risk assets is also critical for solvency and portfolio risk management. The same can be said for the catastrophe risk profile differences like fire, hail, lightning and flooding for each suburb in South Africa.

When it comes to automated rating engines, call centres, claims management systems, CRM systems, on-line sales channels and aggregators, technology has played a big role. Tech is great, but there is one obvious limitation that we have all come across: tech is not great at interpreting what you mean - you need to be very specific and accurate.

Property data

A company such as Lightstone provides brokers and insurers with accurate property data that aids them in identifying risks (such as exposures to fires and crime) in areas, as well as identifying where there is emerging wealth and value within the property space.

In the auto space, it is critical to get the make, derivative, and VIN correct. The ability to accurately identify the asset and price it accordingly is critical for an insurance company. 70% of short term insurance losses are attributable to motor, and according to research conducted by Lightstone more than 40% of the pre-inspections performed had incorrect vehicle information, leading to unprofitable underwriting.

Value chain implications of incorrect data