Identify Policies In Need Of Right-Sizing Estimated Replacement Cost, Consumer's Risk And Corresponding Premiums

BUSINESS BENEFIT SERIES: Property & Casualty Insurance Data Services

Industry: Property & Casualty Insurance

Problem: Property & casualty insurance carriers often lack sufficient information to identify which policies in their existing book-of business are underinsured and by how much, putting the policyholder and carrier at risk in terms of proper coverage and not recognizing accurate premiums.

Solution: Use First American CoreLogic to leverage property data culled from its historical deed transaction file and tax assessor database to identify properties that may have experienced property improvement and are thus in need of re-evaluation.

Identify Policies In Need Of Right-Sizing Estimated Replacement Cost, Consumer's Risk And Corresponding Premiums

Typical Business Process:

Property & casualty insurance carriers often have large numbers of their existing policies underinsured in terms of replacement cost due to a lack of current or accurate information about the properties involved. Because conducting field inspections of all properties in their book of business would be cost prohibitive, carriers are forced to rely on their policyholders to provide input for right-sizing. Alternatively, some carriers use industry standard estimated replacement cost models, sometimes in combination with internally developed statistics and models, in order to project current replacement costs, but this broad approach often proves inaccurate at the individual property level.

Alternative Business Process:

By using our Match and Append Database Service solution, you can append key data elements to your file of policyholders who have had home equity loan or cash-out refinance activity indicative of home improvement. By accessing our real property and mortgage data on more than 140 million individual properties in more than 3,000 counties nationwide, you will receive accurate and current data rather than general statistics. This allows you to better manage existing portfolios by focusing your time and efforts only on those properties that require reevaluation in terms of the risk, coverage and premiums. Additionally, current property characteristic data, such as year built, square footage, land use codes and more, can be appended to your file so you can update your customer records.

Expected Results:

Identify those properties most likely to have experienced home improvement activities and proactively engage customers in ensuring that they have appropriate replacement value protection. Assign the most accurate and proper replacement value for a win-win all around.