What should insurers do? The message here for all these bullet points pulled together is that insurers need to develop a holistic, geo-driven point of view woven through all the strategic, tactical and operational initiatives. It’s got to be throughout the entire value chain and just some callouts – has to be enterprise wide. You have to weave spatial and non-spatial data together which means you have to know how to work with unstructured data. We didn’t touch upon that. That would be a presentation for another day. But we need to talk about how you weave together structured and unstructured data. A lot of spatial data that we work with in the insurance industry, as we know, is unstructured. It has to be comprehensive. It’s got to integrate with our core admin systems. But how do we update the new spatial data flows as new territories get built, as you get new geo-coded data in? And how do you navigate and search all of this information? How do you know what you have?
You have to find ways to create and store it. Those bullets probably should be reversed. Once you create storage then you have to navigate and search it and then the visualization, of course, is key. And that’s where we are. Thank you for listening.
TINNIRELLO: Barry, an absolutely excellent presentation. You did not disappoint me; I’m sure Lee feels the same way. I’m sure of the audience.
I have a couple of questions for you. You really poured your heart out with a lot of information here on the spatial arena. Where does a company start whether they’re small or a large carrier? How do they get into this and how scalable are these efforts if they start in terms of the feedback of investing into this technology?
RABKIN: I think that you would start with the topic of the day which is underwriting. So I would start with that as a function and I would identify the data that I need, both data that I have internally as well as the data that I have to collect from third parties and then I would ask do I want to go with a boutique firm or do I want to go with a Pitney Bowes, an EZRI and it also depends on how detailed the data is that I need. If I need very detailed data about parcels, depending on if I’m doing a very significant granular rating, maybe I should talk to First American Proxix. If I don’t need that detailed data, if it’s more marketing, well we’re talking underwriting. So, it depends on the function. If it’s underwriting, I think I want very detailed parcel data, I want detailed data about jurisdictions and then I need to consider: do I want to go to a big firm like an EZRI or a MapInfo or do I want to go to a firm that is primarily information oriented like an Oracle which has spatial capabilities. Those are types of decisions that I have to get into. But I think I would do underwriting first. As you saw on one of the slides and I didn’t do the readout, one of the firms said that they’re having trouble with ROI and one firm told us that it’s just not going to be ROI driven.
TINNIRELLO: This question is for both you and Glen. Let’s assume that both the initiatives that you and Glen have talked about are implemented or started. In both instances one of the key areas – maintainability of the information that’s been collected and the quality of the data in terms of keeping it up.
So Glen, let me turn this back to you with your device and your initiatives. How does the underwriting area maintain accuracy of the information that has been collected and how often should it be updated? And then I’ll turn that question back over to Barry.
DARASKEVICH: OK. Great. Thank you. Well, actually that was something I thought and I’ll have to follow it up with an earlier question that was asked about what about these initiatives where you get information on a building at the point of the CO. And the problem you have in those areas is one very important factor that affects losses – maintenance both of residential and commercial properties and 2) the fact that we’re very much an improvement society on the residential side and on the commercial side there are always modifications made to buildings. If you build a system where you’re collecting data once and you don’t go back, you’re really going to miss something that perhaps your competitors are following up on. So in terms of the underwriters keeping the data current, it really depends on lines of business. But we have found that when you go out on the inspection process and you’ve been pre-informed that inspection let’s say for residential property with
| Page 2
| Page 3
| Page 4
| Page 5
| Page 6
| Page 7
| Page 8
| Page 9
| Page 10
| Page 11