Insurance firms will find particular interest and value in Lightstone's risk modeling capabilities for elements such as catastrophe risk, claims risk and lapse risk. With these insights on hand about customers, insurers (and their reinsurers) are able to effectively manage their risk exposure and accurately price premiums.
Catastrophe Risk Model
The Lightstone Catastrophe Risk Model provides a risk indicator for various weather, geological and location based risk factors that would expose insurers to risk of claim.
The Catastrophe Risk Model includes risk indices for the following:
- Flooding: Assigns a risk index based on the distance and altitude from a water source, with consideration for the type of water source, e.g. perennial or non-perennial
- Lightning and Hail: Measures a property's exposure to lightning and hail damage based on the reported lightning density per square km, adjusted for altitude.
- Dolomite: Identifies whether a property is situated on ground consisting of dolomite and estimates the risk of sinkholes based on proximity to mines and other sinkholes.
- Earthquakes: Analyses whether a property is located in an earthquake-prone region based on historical tremor intensity and frequency.
- Crime: Offers a comprehensive risk index and trends for various categories of crime, such as contact crime or property related crime, based on official SAPS data which is mapped spatially.
- Proximity: Reviews the distance of the property from several key points of interest such as police stations, fire stations and airports.
All information is presented as an index that is geo-coded to a specific property for each of the above factors. The Catastrophe Risk Model allows insurers to assess existing and potential clients' propensity to certain risk factors, enabling more accurate premium setting and greater disclosure to reinsurers of potentially catastrophic risk factors.
Claims and Lapse Risk Models
Claims and Lapse Risk Models are developed using detailed behavioural consumer information. Using indicators such as age, gender, disposable income, credit performance, spend utilisation and credit product consumption provides a unique insight into expected insurance behaviour. Models are custom built for an insurer's unique requirements and include models for both personal and commercial business lines.
Lightstone has extensive expertise in providing analytic based solutions to various organisations across a myriad of industries - including insurance. Read more about other analytic solutions and models we are able to provide.
Costs are not available on the website as these are dynamic and depend on the business requirements. Please use the link below to get in touch with us to discuss your needs.