CoreLogic Debuts Non-Weather Related Risk Solution

WaterRisk and Fire Risk measure the frequency of non-weather-related water and fire events, which account for significant proportions of homeowner insurance losses.

(Photo credit: Davide Restivo.)

CoreLogic (Irvine, Calif.), a provider of global property information, analytics and data-enabled solutions provider, has announced the availability of two products designed to comprehensively assess non-weather-related water and fire risk. CoreLogic describes WaterRisk and FireRisk—both products of Location, Inc. (Worcester, Mass.)—as the first to measure frequency of non-weather-related water and fire events, representing the only non-weather-related risk assessment solutions available on the market today. WaterRisk and FireRisk are available for portfolio consumption and through the CoreLogic’s RiskMeter Online offering.

Steve Brewer, SVP, Insurance and Spatial Solutions, CoreLogic.

The Location, Inc. products are designed to address property insurers’ historical difficulty accurately analyzing the likelihood of non-weather-related hazards—such as plumbing and appliance leaks or the likelihood of house fires—due to a lack of consistent and complete data that capture unaccounted for water and fire risk. The vendor reports that non-weather-related water damage accounts for approximately 20 percent of all homeowner insurance losses nationwide, and 84 percent of home structure fire are either intentionally ignited, smoking accidents or a result of misused or failed cooking equipment, unattended candles or failures of heating and electrical systems.

WaterRisk and FireRisk by Location, Inc. apply predictive analytics that consider appliances, systems, wiring, structures, climate and geographical location. This enables insurers to more accurately quantify the likelihood and severity of damage from water and fire beyond previous methods of qualification, the vendor says. The solution utilizes 2 billion data points nationwide, as well as unique geospatial risk models to generate over 11 million points of risk, according to CoreLogic.

Previously Unaccounted-for Quantifiers of Risk

“Historically, insurance risk has been calculated primarily through the analysis of natural hazard risks such as hail, flood, wildfire and storm surge, without the inclusion of non-weather hazards,” comments Steve Brewer, executive, Insurance and Spatial Solutions, CoreLogic. “With WaterRisk and FireRisk, insurers are now empowered with these previously unaccounted-for quantifiers of risk to more accurately underwrite and price policies commensurate with real risk. We are proud to offer our clients the missing piece – the only non-weather-related solution for the insurance industry that uses measurable data to holistically assess structural risk.”

With complete, seamless U.S. coverage at the individual block level, the products offer 300 times more granularity into specific property risk factors than the average ZIP code analysis can provide, according to the vendor. Both products identify precise, measurable data on previously unquantifiable factors such as poorly maintained properties, improper storage of flammable materials or plumbing system failures, according to CoreLogic.

“We are passionate about building data sets and uncovering sources where no other company can,” comments Andrew Schiller, CEO, Location, Inc. “WaterRisk and FireRisk represent an enormous opportunity for the property insurance industry to improve accuracy and outcomes. We have had strong results testing with carriers nationwide, are excited about the use cases we are already seeing with clients.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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