(Hail-damaged research vehicle. Source: NOAA‘s image library.)
CoreLogic (Irvine, Calif.) has expanded its natural hazard risk management capabilities by adding Weather Fusion hail, wind and lightning weather forensics to its proprietary data and analytics, in order to support near real-time property-specific weather event verification. The combination of capabilities will enable the insurers to more reliably identify loss shortly after a weather event occurs through single-source access to multiple weather data sets and solutions, according to the vendor.
CoreLogic’s news continues the trend of data vendors providing peril-specific scores that underwriters can use for evaluation of individual properties, as well adding powerful new claims capabilities for verifying damage and limiting fraud, according to Mark Breading, partner at Boston-based research and advisory firm SMA.
“With this announcement, CoreLogic is providing what insurers are asking for – more current peril data and more location specific information,” Breading comments. “The acquisitions that CoreLogic has made over the past two years position them to offer more of these kinds of capabilities to insurers in the future.”
Insured losses due to hail and thunderstorms totaled $25 billion in 2011 and $14 billion in 2012, according to the Insurance Information Institute (iii). The iii’s data shows that the average claim totaled $7,177, with $30 out of every $100 collected in a homeowner’s insurance premium typically going toward wind and hail claim payments. CoreLogic says that its aim in adding the Weather Fusion hail, wind and lightning reports is to address the difficulty insurers typically face in credibly verifying damages caused by wind, hail and lightning at the single-property level. Insurance carriers’ ability to confidently verify the cause and date of damage and losses near real time can help them save critical time and money, the vendor asserts.
To address those typical challenges, the Weather Fusion reports enables CoreLogic to deliver the following improvements to insurers:
- Historical address-level weather event insight for underwriter examination that ultimately results in smarter, more informed policy decisions.
- The ability to accurately distinguish what areas were actually impacted and what size hail fell during a weather event.
- Hail reports shortly after a severe weather event occurs, with maps updated as frequently as every hour.
- Timely notifications of hail activity for custom addresses, as well as the previous day’s hail activity.
- The ability to reduce fraudulent claims attributed to severe weather and accelerate the claims verification process by provisioning information directly after a weather event.
- A Hail Risk Score, which compares address-specific historical hail events against historical claim experience for all relevant hail locations in the U.S., refreshed daily.
- Digital plots of hail paths for impacted geographic areas and color-coded by quarter-inch increments illustrating hail from three-quarters of an inch to four inches in diameter.
- Historical hailstorm data at a custom address-specific location, including hail claim verification with the dates and sizes of hail for each hailstorm, within one, three and ten miles of the address.
- Address-specific lightning strike analysis, along with date and time (to the nearest millisecond), including count of individual lightning strokes, custom maps, latitude/longitude, polarity (negative or positive) and amplitude of a stroke.
- Wind Risk Scores, designed to verify maximum wind gust and direction at an individual address level.
“This is another great example of the new information landscape that insurers find themselves operating in,” comments Matt Josefowicz, managing director, Novarica. “There’s more information than ever, moving faster than ever, which allows insurers to operate in fundamentally different ways if they’re able to take advantage of it.”
Traditionally, wind event verification has been considered an unsolvable problem and was based on public safety algorithms or relied on hand-drawn maps and single-point data observations collected from the nearest airport locations, asserts Jay Kingsley, senior VP, CoreLogic Insurance and Spatial Solutions.
“Now, the unique weather science and data techniques behind our wind, hail and lightning solutions will provide insurance carriers with a more scientific approach to understanding individual property damage from storms,” Kingsley says. “Though billions of dollars are paid out every year for exterior damage to homes, up until now there has been no real way to credibly verify these losses. CoreLogic now provides a more powerful, data-driven approach to this problem through weather peril verification reports.”
(Related Content: CoreLogic’s Acquistions Portent Rapid Business Evolution in Property Insurance.)