artifacts and we mush these together and what we have is some major exposures and the only purpose of the graph is really two purposes. One – the framework – the heuristic and also to show some major exposure. So in people and places, lines are the key exposure. So in places and physical artifacts it’s property and business interruption. Are those the only ones? No, but this is for illustrative purposes only. Physical artifacts. We’re submitting it’s lines and lifestyle and property and business interruption and activities. And by activities, which I’m highlighting here between people and physical artifacts – that’s person and commercial driving behavior. So as you think about where you want to have your spatial initiatives, how do you want to retool your value chain, you can use a heuristic like this. So for activities, for personal driving, this is where you might say, hey I just saw this press release, time-stamped today, ISO and Ivox to study driver data with monitor units – just reading from the press release for a second. They’re going to analyze data collected by telematic devices installed in passenger vehicles and commercial fleets. They’re going to use this as a foundation for next-gen tools and joint product development for measuring management and reducing risk. Rating, underwriting and claims purposes and Ivox, they have a metric that they use – Driver’s Score – patent pending – Driver’s Score. And, of course, there are other companies like DriveCam that come to mind as well. So when you think about these various capabilities, you can use a heuristic like this to place this.
But what are insurers doing? Enough of this hand-waving and these heuristics. These are three insurers that we talk to. They’re all property/casualty, but again, could it could be life and health just as well. A couple of them are in Europe and on is here and we have hidden their names. Those of you from the insurance industry you know that you love to remain anonymous. You all have the secret sauce and we won’t go any further into that. The rationale for all three of them is underwriting, although two of them are also using spatial initiatives for marketing. And one of them in particular, insurer A, is using spatial capabilities for product development and then you can see that insurer B is also using it for rating and insurer C is using this for claims as well.
But why is insurer A using spatial initiatives, spatial information management? They told us that their drive is at insurer verified locations to create loss protections and to sharpen marketing opportunities. But they’re finding that they can get measure of success a) because their geo-applications are still in development, they’re still too new and there are a fair number of features that are not yet available for the technology vendors. So if there are any technology vendors listening to this you might look over your features and your capabilities and think about what you bring to the table.
They are planning to use the NOAA data for real time property risk analysis which I thought was pretty good. There are a lot of monitoring firms out there and we’re going to get into types of spatial firms and technology firms and information firms in a minute.
Insurer B – manage risk accumulation. You see that’s what both they and insurer C are doing. The point is they’re using it for underwriting but it’s more than underwriting. Two of them are using it for marketing as well, one for claims, one for product development as well. So, we have it for more than underwriting which is one of our points. A sense of place throughout the value chain.
Now, we’re looking at six spatial technology categories. Because this is far, far more than only pretty maps. There’s spatial information management and that’s what we mean by SIM. There’s spatial data quality firms. There’s enterprise class software firms. There’s spatial search firms. There’s spatial analytics and risk modeling firms and there are driver behavior management firms.
As an example, on the SIM we have Esre and First American Proxix and I’ll let you read this. Pitney Bowes, by the way, that’s MapInfo. If you recall Pitney Bowes bought MapInfo. Here’s the spatial data quality firms. The enterprise class software firms we sometimes call MISO if we don’t do it alphabetically and that’s Microsoft, IBM, Oracle and SAP. Spatial search firms – by the way Metacart is a relatively new firm and I think they’re based here in Massachusetts. But they do something that’s really very cool – to use the jargon of the day. If you give Metacarta a Word document where you have an address written in Word, they can turn that into long/lat. They can actually geocode it from the Word document and I thought that was pretty cool when I talked to them.
Then we have spatial analytics and risk modeling firms – I think Glen knows a little bit about AIR here and we show some others there. The Driver Behavior Management Firms – I just want to give the qualifier – because we don’t do magic quadrants here – we’re quite objective. These are just representative of illustrative firms in each of these categories. I’m not saying that these are the greatest since Swiss cheese and sliced bread and fire, but these are example firms that you could look to in these various categories.
There’s also information. You need information and here’s some firms – again illustrative – you have NC4. I have actually met with them and talked with them – they provide real time alerts of unfolding events in a specific geographic area. They watch events or for events 7 by 24 for most places around the globe. And so depending on what your insurance line is and where your insurable exposures are, you might want to look at a firm like NC4. Then here are some other firms – Clark University is here in Massachusetts. We have Ordnance Survey in the United Kingdom. USGS, of course, and as an example of another monitoring firm, WSI Corporation. These types of firms do exist where you can get the data. One of your challenges naturally is integrating that data in and that gets us in to my last slide.