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McKenzie Intelligence Services9/10/20 12:00 AM3 min read

Creating value from intelligence analysis

Vicky Mills, Chief Product Officer, shines a light on the MIS mantra of Problem – Promise – Proof as regards to exposure and claims and what this means for carriers.

For the last four years, we have delivered intelligence for over 120 truly global events with market exposures totalling over £10 billion, ranging from hurricanes, wildfires, floods and earthquakes to terrorism, industrial accidents and more.

As you would expect, we will always meet tight deadlines and utilise our cutting-edge technology to support the global (re)insurance market on their mission to service policyholders proactively and cost effectively.

Risk exposure and claims settlement have their own idiosyncrasies when it comes to delivering first rate data, but we’re nothing if flexible when it comes to our three Ps: Problem, Promise, Proof.

What’s my exposure?

Undoubtedly the first question an underwriter asks on hearing of a catastrophe in a territory they write.

For ‘problem’, I like to think ‘challenge’ and ours is to provide data that minimises the uncertainty and inaccuracy on likely exposure immediately post event against the tight internal reporting deadlines that clients require.

To resolve this, our promise; MIS uses facts gathered from multiple sources to deliver real intelligence against each policy and portfolio within 24 hours. This tailored intelligence delivers radically more accurate results than traditional loss models.

As an example, from a man-made catastrophe we were asked to provide data for, 40,000 locations in Michigan were analysed within 8 hours of a dam burst.

One insurer was able to improve accuracy of reserving by $20 million against their model.

On another occasion, following Hurricane Dorian, the MIS report delivered a 93% improvement in one insurer’s initial reserving against their predictive model, saving $90 million of initial reserving and making better use of their working capital.

How much is it going to cost me?

The second question!

Claims reserving and settlement is always a challenge. The problems are three-fold: how to modernise the claims process to pay claims faster and cost effectively; how to mitigate risks and be prepared in the face of uncertainty to deliver world leading policyholder service; and how to make the best use of skilled claims resource.

We look to deliver an effective first-time triage and this service can be personalised so the sites to be analysed can be geolocated and prioritised based on client criteria, with alerts tailored to support risk mitigation and preparedness. This allows fast and accurate decision making by Managing Agents and Third Party Administrators.

We bring the market a step closer to “straight through” processing and automation for claims, and we provide effective triage that can reduce claims cycle times up to 40% with up to a 2% improvement in expense ratio.

Within 72 hours of Hurricane Laura, MIS assessed 108,000 individual properties for damage and functionality. Following the recent California wildfires, MIS enabled a claim settlement from space within 72 hours; and after Hurricane Dorian, the most intense tropical cyclone on record to strike the Bahamas, access to the affected areas was impossible and MIS procured 5cm resolution drone imagery of high net worth properties.

Critically for our clients, our intelligence is delivered without any system installation or hosting. It is based on curated, best in class imagery and data and we continue to listen carefully to feedback.

And for us this is a process of constant improvement using the best technology available. For instance, we were recently awarded a contract for a European Space Agency Demonstration Project to develop and deliver a Global Event Observer for the insurance industry and to validate its performance with involved pilot users.

The evolution of our service offerings will deliver radical results, utilising the highest resolution imagery in the world and an ever-growing array of space and ground data sources, always underpinned by human expertise.

Our tiered approach to service delivery for 2021 and beyond is designed to be flexible and seamless, further details coming soon….