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. Continue reading GIS FOR INSURANCE – GIS for Business and Service Planning
From a marketing perspective, the principal attraction of spatial analysis is still probably a psychological one. Marketeers seem to feel that geography is important in that they know that there are major geographic variations in the demand for products. Maybe they feel that geographers should be able to help them perform better and that there might be methods that geographers know about that could be beneficial to them. Those in the industry who believe this will probably already be displaying more confidence in the value of geography than do many geographers!
Yet at the same time it is evident that there are mutual benefits to both the marketing industry and to geography from closer collaboration. The geographer might gain access to data not in the public domain, new publishing opportunities may arise and there is at least some prospect for technology transfer and commercialization. The marketing industry might gain access to a largely untapped skill base. The question is, however, which methods, which applications, and which new products might be created through such collaborations? Continue reading Marketing Spatial Analysis: A review of prospects and technologies relevant to marketing – GIS For Business and Service Planning