GIS FOR INSURANCE – GIS for Business and Service Planning

It is highly likely that the insurance industry will soon face similar regulations to those already faced by the banking industry (Mertz 1993a). The reporting is likely to be at the zipcode (postcode) level. However, since this is in the future, this section on insurance will focus on current applications: risk assessment and avoidance. In the US, natural disaster after natural disaster has occurred over the last four years, bringing the total insurance industry’s bill to $34 billion (Mertz 1993b). Because of this, the industry has begun seriously to consider how it underwrites policies. The Oakland fire, Hurricane Andrew and the floods and other catastrophes of the summer of 1003 each pointed out the need for greater underwriting care. Insurance companies are beginning to realize that they must either refuse to insure properties that are at great risk from natural disasters, or justify larger premiums for doing so, or clearly identify precise areas in which property damage may be partially reimbursed from other sources. For example, the cross-hatched areas in the figure are wind-pools: insurers who write property-damage policies in these areas may be partially reimbursed by a state fund.

Insurance Bis Gis Books Gis For Business and Service Planning

Figure: GIS for insurance riskΒ assessment. Caloosahatchee River, US (grey: low risk; hatched: high risk)

Analysing properties in relation to the geographical likelihood that they will be damaged because of a natural disaster is not possible without using geographical analysis (Runnels 1993). These kinds of application are good examples of β€œembedding” because they primarily depend on a property being compared with a β€œgeo-file”, or a listing of addresses that has been coded for likelihood of damage using GIS. In this instance, operators are unlikely to see a map during the underwriting process.

Published by

bisgis

GIS FOR BUSINESS

Comment...

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s