ImageCat announced a new partnership with CoreLogic that will allow reinsurers to reduce the systemic risk of underinsurance. Through the partnership, CoreLogic's data and property insight into US property replacement cost values are available through ImageCat's inhance exposure management platform.

Incorrect property valuation is just one of many data problems that create significant uncertainty in reinsurers' understanding of property catastrophe portfolios. Other material risk factors include precise building location and use, as well as construction type. Incorrect valuation can lead to high losses and large uncertainties in catastrophe model output, which the insurers use for capital allocation.

"Alterative property valuation estimates are perhaps the easiest way for reinsurers to identify systematic underinsurance, which is a major problem in the industry," Charles Huyck, executive vice president of ImageCat says.

Huyck estimates that only 10% of insured properties are correctly valued for their current rebuilding costs, and as many as 30% or 40% may be underinsured.

Over the last three years, ImageCat worked with more than 20 London market insurers with large exposures in the U.S. markets to develop inhance. The program, launched in May 2014, combines ImageCat's advanced innovation and analytical capabilities, with the in-depth building valuation models developed by CoreLogic to provide users with a versatile and innovative online platform for combatting exposure data issues.

"Utilizing the extensive property data resources and unrivaled building valuation models of CoreLogic, inhance serves as a powerful analytics and data platform that allows users to quickly identify high risk properties or portfolios that are significantly under- or over-insured," said Huyck.

Special Reports /

ImageCat and CoreLogic Release New Exposure Management Platform

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