First American Proxix Solutions, a provider of geospatial technology, data, and software, announced the addition of risk concentration as an option in its CATUM automated insurance suite.
One of the challenges facing property/casualty companies is the ability to identify accurately a concentration of policy risk within a geographic area. Traditionally, property/casualty companies have attempted to measure risk concentration by counting the number of policies in a defined geographic region, such as counties, cities, or ZIP codes. However, this method does not identify whether policies are clustered or dispersed within a given geographic region.
To address this, First American Proxix developed a set of grid layers in varying square-mile areas for all 50 states, which have been integrated within CATUM as layer options. CATUM processes street addresses using its proprietary geocoding and spatial analysis technology and appends a cell identification to each record according to the selected grid matrix. Insurers then can import files into their reporting application and generate reports detailing the number of policies and the total exposure in a specific area. Appended files can be shipped in shapefile format for map display.
"Extending our hazard risk management solution offering to include risk concentration provides property/casualty companies with the accurate information they need to assess their risk concentration at the time of rate quote," says Howard Botts, executive vice president of First American Proxix Solutions. "This helps insurers meet the catastrophe risk management requirements A.M. Best has incorporated into its rating processes."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.