Summary
The 2005 storm season was an early warning signal for insurance companies: Since the nature and force of disasters have changed, disaster planning must change with them. A key element in that change must be the way insurers collect, store, analyze, leverage and distribute data throughout their organization. Once the organization understands the potential pitfalls, emerging best practices indicate that three basic steps lead to a successful implementation. In the first step, senior management engages with the IT organization to develop hypotheses regarding the greatest value drivers within an organization where integrated data can play a role. The second step is to clarify and expand the hypotheses through sessions with the actual business users, which for catastrophic planning might include actuaries, underwriters and data analysts. In step three, IT must organize the data within an insurance-specific logical data model, and then link the business questions to the integrated data and ultimate sources from which the data originates.
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Linking for Fewer Losses
The numbers are already all too familiar: In 2005, Hurricane Katrina rang up between $38 billion and $55 billion in insured property losses spread mostly across homeowners, commercial property, business interruption, and marine and energy lines. Then there was Rita.. .and then Wilma.
According to the Insurance Information Institute,"The number of natural and man-made catastrophes has been increasing on a global scale for 20 years.... Eight of the 10 most expensive disasters in U.S. history occurred within the past four years." The list of eight includes the Sept. 11, 2001, terrorist attack, which made all ...See the full content of this document
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