Product Focus – Commercial and Residential Fire Insight Update

Fire is one of the few perils that consistently meets an insurer’s estimated maximum loss expectation.  Getting a greater understanding of the geographic variation in the risk of fire is becoming more important and something that many insurers are spending more time building into rating area files for property underwriting purposes.

There are many factors that influence the risk of fire ranging from property specific factors relating to the vulnerability of different types of building through to demographic and behavioural factors describing neighbourhoods and streets that are more prone to certain fire related incidents.

Business Insight has been researching and building geographic fire risk models for the last 8 years. Having a risk model that has been well researched and that can accurately differentiate risk across the UK can add considerable value to the accuracy of your buildings and contents rating area files.

Our residential fire model is based on extensive research into residential fires and assesses the relative risk and variation of deliberate and accidental fire claims across the UK.  Our commercial fire model assesses the risk of a fire claim by commercial business category, source & frequency. Both models utilise highly complex computer algorithms and vast quantities of data relating to residential and commercial properties, the local environment and the demographic make-up by area to estimate risk more precisely.

As part of our commitment to ensuring our models are continuously enhanced and kept up-to-date, we have recently recalibrated the residential and commercial fire models with enhanced data to provide a more granular level of detail and a more accurate assessment of risk.

Both models have been validated by a number of insurers using fire claims information and have shown a high degree of discrimination between high and low-risk areas.

Key benefits include:

  • Gaining a deeper understanding of your exposure to fire claims in the UK across your existing book of business.
  • Gaining insight into postcode areas where you have no experience data.
  • Discovering where you need to modify your rates to improve your fire loss ratio.

Contact our sales team for a demonstration on 01926 421408.