Risk Selection and Pricing is the process of selecting liabilities that the purchaser feels comfortable taking on, especially during the process of screening insurance applicants.
Conventionally
The risk selection process is currently based on incomplete information, because only a subset of a property’s true risk is measured by traditional selection processes. Selectors cannot make informed decisions about risks they are unaware of, leaving them vulnerable to unmitigated risk.
Challenge
The current risk assessment process for insurance leans heavily on historical data and building data like construction materials and year built, not forward-looking information that integrates externalities such as power and transportation networks.
The gaps in current risk assessment lead to incorrect selections of risk, which ultimately result in more losses for the selector as well as impacting customers who may be charged higher premiums due to inaccurate information about their true resilience.
Solution
One Concern’s technology provides both building and portfolio data and integrates risk both inside and outside the fence of a property. We paint a more complete picture of risk that helps our customers make informed decisions and select resilient investments.
We provide network data, not just building data, in order to unveil the true exposure of a prospective customer/investment or current asset/customer. We allow selectors to understand the impact of climate in detail to finalize decisions, which minimizes losses. With our platform, clients can see the full cost of mitigating for hazards, and price their insurance products accordingly.