High quality data can create a transformative impact on an insurer’s view which can lead to improved premium pricing and can mean the difference between an insurer providing or not providing a quote.
Additionally, the insurance industry has seen significant changes in recent years with the emergence of big data1, artificial intelligence, and advanced analytics 2. With the unprecedented amount of data available insurers are using these advanced analytics to reimagine the way they interact with consumers through product design, underwriting, price and claims3.
Benefits of Good Data Management
Good data management is a critical asset for social housing associations and allows you to deliver a wide range of benefits that can enhance efficiency, accountability, and service quality.
Social housing associations rely on data to understand tenant preferences, demographics, and needs. Ensuring that you have good data management will enable you to better understand the requirements of your community which can increase resident satisfaction, build trust in the community, and improve living quality whilst also allowing you to understand your assets.
Furthermore, data-driven insights allow for swift resolution to any complaint that may arise which can minimise the disruption to tenant’s daily lives and enhance overall satisfaction. In the event of an insurance claim, these insights can also allow for swift resolution allowing housing associations to protect their assets and better support their residents.
Additionally, good data management is vital for ensuring that housing associations adhere to legal and regulatory compliance. Accurate record-keeping and reporting are essential for demonstrating compliance.
Accurate Risk Assessments
In the current hard insurance market conditions that are facing the social housing sector good data is the cornerstone of effective risk assessment in the industry. It allows insurers to delve deep into historical data allowing them to identify trends and access the likelihood of claims.
Insurers require accurate information about the individual sums insured for each property that you own, along with details about the construction type of each property. By understanding individual sums insured and construction type allows insurers to accurately reflect the risk from a fire/flood perspective. Without this data insurers may be unable to quote or take a worst-case scenario approach which is reflected in pricing.
Additionally, the sum insured for each property ensure that you have adequate protection in the event of loss, while knowing the construction type is crucial for evaluating the property’s vulnerability to various risk. This information provided enables insurers to tailor their policies to your unique needs, ensuring that you have the right levels of protection for your properties.
Post-loss Reflection and Collaboration
When reflecting upon significant losses, it is essential to assess the lessons learned and the risk mitigations implemented. Gathering this information and keeping insurers informed about these measures can yield a positive impact on premiums at the time of policy renewal.
When policyholders and insurers work together to analyse past incidents and share comprehensive data on the lessons learned and risk mitigation measures taken, it provides insurers with a clearer understanding of the unique risks involved. This improved understanding enables insurers to make more accurate assessments of the policyholder’s risk profile. By ensuring that you have access to robust, data-backed insights, insurers can better align coverage with the actual level of risk exposure.
This collaborative approach can lead to a positive impact at renewal and can also help social housing providers to proactively commit to risk management and the dedication to minimising future losses.
For more information, please reach out to a Gallagher representative.
