geo-intelligence in the insurance industry - nathan risk suite
TRANSCRIPT
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GEO-INTELLIGENCE IN THE INSURANCE INDUSTRY -
NATHAN RISK SUITE
Andreas Siebert
Head of Geospatial Solutions
12th Aquaculture Insurance & Risk Management Conference
Kinsale, Cork, March 2011
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Agenda
1. Geo-Intelligence in the insurance industry
� Geographical Information Systems (GIS)
� Value chain
2. Geo-Intelligence in risk management
� Risk identification and mapping
� Risk modelling and accumulation control
3. Solution for aquaculture insurance
� Fishfarm Information System (FIS)
4. Solutions for NatCat risk management
� NATHAN Risk Suite
5. Q & A
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GEO-INTELLIGENCE IN THE INSURANCE BUSINESS
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Geo-Intelligence is based on Geographic Information Systems (GIS)
A Geographic Information System (GIS) allows us to
organize, analyze, and display
geographically referenced data in the form of
maps, tabular data or reports
and thus helps us to make intelligent use of the geo information and to reveal important information like spatial relationships or trends.
2-digit ZIP
codeNumber
of risks Sum insured EUR
7978
7277
76
7571
70
74
73Connectingmaps and databases
7 97 8
7 27 7
7 6
7 57 1
7 0
7 4
7 3Sum insured< 50 m €50 – 100 m €> 100 m €
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Principles of GISMultiple geocoded data sources improving risk transparency
Claims and event information
GIStechnology
Statistics (e.g. production data
Aerial and satellite imagery
Hazard data
Improved risk transparency
Post codes
Number of
risks
Sum insured
(EUR)
Insurance data(liabilities distribution)
Geocoding-tools(e.g. GPS)
Claims and event information
Statistics (e.g. production data)
Aerial and satellite imagery
Hazard data
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Product
development
Sales andmarketing
Riskmanagement
Claims management
Client management
and services
Riskidentification
Riskassessment
Modelling, Pricing
Riskcommunication
Value chain in the insurance industry
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Re-Insurance
10%
50%
10%
30%Product development
Sales and marketing
Risk management
Claims management
Client managment
10%
40%
30%
10%
10%
Product development
Sales and marketing
Risk management
Claims management
Client managment
Primary Insurance
Geo-information is used in many business processes with different focuses in
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2000
2010
Use of Geo-Intelligence in different lines of business
80%
5%10%
5% property insurance
life / health
liability (motor vehicle, environment)transport
energy / engineering
50%
10%
20%
10%
10%property insurance
life / health
liability (motor vehicle, environment)transport
energy / engineering
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GEO-INTELLIGENCE IN THE RISK MANAGEMENT
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Global natural catastrophes 1980 – 2009Increase in number of events
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Risk Identification
Geospatial assessment of portfolios (worldwide scale)
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Geospatial assessment of portfolios (countrywide scale)
Risk Identification
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Risk Identification
Geospatial assessment of portfolios (local scale)
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Risk Assessment
Global hazard assessment (tsunami zones) of exposed locations
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Risk Assessment
Detailed storm surge maps (local resolution)
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Quantitative assessment of exposed risk locations
Quantitative evaluation
of exposed locations
EQ Locations Sum PD TSI
Zone 0 120 7.163.044.720
Zone 1 70 3.970.989.382
Zone 2 43 1.849.545.546
Zone 3 17 556.629.741
Zone 4 4 7.922.628
Sum 254 13.548.132.017
Risk Evaluation
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Risk = F (Hazard, Vulnerability, Exposed Values)
Modelling, Pricing
Set ofscenarios
Expected loss / loss occurrenceprobability
Risk curveIndividual
exposure
Hazard information
Exposure distribution
Vulnerability functions
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SOLUTION FOR AQUACULTURE INSURANCE
FISHFARM INFORMATION SYSTEM (FIS)
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Motivation
Nowadays sustainable aquaculture risk management requires
� Effective data and portfolio management (incl. accumulation control)
� A solid understanding of the underlying spatial dimension, since fisheries and
aquaculture are fundamentally spatially distributed
With FIS a tool is provided for
� Portfolio and data management
� Accumulation control
� Mapping aquatic resources, fishfarms, etc.,
which supports decision making and increases risk transparency.
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Fishfarm Information System
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Portfolio Management
Support for the Underwriter:
� easy to use (predefined forms) on Microsoft Excel basis
� data consistency checks
� inclusion of natural hazard information (source by Munich Re)
� automatic currency conversion
� automatic concern line check
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Accumulation Control
� Every site is assigned to one area
� All values are stored in the same currency
� All data is stored in one database resp. sheet
� export to Google Earth to visualize the whole portfolio
More transparency
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
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Country data for Spain in 2008, currency: GBP
Maximum
Concern Value
Max. Exposure
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Improved risk transparency by mapping with Google Earth or similar solutions
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SOLUTIONS FOR NATCAT RISK MANAGEMENT
NATHAN RISK SUITE
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1978 / 1988 / 1998 / 2009 / 2011 2000 / 2004 / 2009 / 2011
1989 / 1999 2001 / 2005 / 20102002 / 2010 / 2011
Geo Services: From print products to online toolsWorld Map, Globe, CD-ROM, DVD, NATHAN
All geo services will help your clients to carry out a more accurate property risk assessment and risk rating based on the Munich Re NatCat hazard zoning system.
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NATHAN Risk SuiteNATural Hazards Assessement Network
NATHAN RiskSuite
NATHAN World Mapof NaturalHazards
NATHAN Globe ofNatural Hazards(DVD)
NATHAN Single Risk
Online
NATHAN Portfolio
Risk
Online
NATHAN Portfolio
Risk
Pro
NATHAN Risk
Consulting
Munich Re’s Geo Services now grouped togetherin the NATHAN Risk Suite product family:
• NATHAN World Map of Natural Hazards. The wall map illustrates the natural hazards distribution.
• NATHAN Globe of Natural Hazards (DVD). The offline tool provides a comprehensive knowledge of the subject of natural hazards.
• NATHAN Single Risk and Portfolio Risk Online.The tool supplies essential NatCat expertise forunderwriting purposes online on connect.munichre.
• NATHAN Portfolio Risk Pro is the premium service for an efficient NatCat risk assessment and is connected directly into clients’ workflow (Web Service).
• NATHAN Risk Consulting supporting client or market events and tailor-made NatCat analysesfor many lines of business.
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NATHAN Risk Suite products
Single and Portfolio Risk Online
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NATHAN Risk Suite – Globe of Natural Hazards (2011)
DVD-DEMO
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� Munich Re’s NATHAN Risk Suite based on geo-intelligence significantly improves
Clients’
� risk management (process risk, accumulation risk, “hidden” exposures)
� underwriting quality and portfolio profitability (all natural hazards anywhere in
the world can be assessed)
� and efficiency/costs (automation and standardization versus manual work)
� Geo knowledge and technologies are also available and very useful for risk
managers in the aquaculture community!
Key take-aways
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THANK YOU VERY MUCH
FOR YOUR ATTENTION
Andreas Siebert
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