A new Verisk product, A-PLUS™ Neighborhood Claims, improves underwriting and rating decisions by wrapping enhanced data elements around claim events that may have affected a residence but were never claimed by the property owners.
Drawing on the A-PLUS property claims database, the system applies a scoring model to assess, at the address level, the degree of risk associated with nonisolated claims. Those claims are for surrounding properties within a three-mile or user-defined radius using a rolling three-year history. The illustration shows the nine perils tracked: fire, flood, freeze, hail, lightning, sinkhole, smoke, water, and wind.
A-PLUS Neighborhood Claims:
- uses a predictive model to assess the degree of risk at the address level
- identifies claims found within close proximity of a property address
- delivers raw data that insurers can integrate into their rate development processes
- provides a score that indicates probability of a future claim on a scale from 1 to 10
Sonja Todmann, property product manager for Verisk Insurance Solutions, says, "During discussions with insurers, we found them deeply intrigued by the prospect of understanding historical loss data in relation to the impact perimeter around properties of new policyholders."
"Our analysis shows that clustered claims surrounding a property without similar filed losses are a strong predictor of future claims. A-PLUS Neighborhood Claims provides analytics that assist insurers with a number of challenges, including enhancing underwriting and rating tiers, developing new pricing variables, and enriching inspection-decision criteria."
To explore becoming a development partner for A-PLUS Neighborhood Claims, contact Sonja at stodmann@verisk.com.
