GIS AND THE INSURANCE SECTOR
Geographic Information Systems, GIS is a tool for collecting, organizing, managing, manipulating, analyzing, storing, and presenting many types of spatial data.
GIS uses location-based information to relate previously unrelated information, using technologies such as Esri ArcGIS Pro, Esri Story Maps, QGIS, and even Google Earth.
Location has a large impact on the insurance industry, as a variety of natural or even social risks, such as crime and natural disasters could affect insurance rates for life and property.
GIS And The Insurance Sector
HOW GIS CAN BE APPLIED TO INSURANCE
- GIS can provide location-based insight for risk management, using smart maps, data analysis, and all of the features for controlling risks and managing business strategies of Insurance companies.
- Regions or even small parts of a terrain can be mapped to figure out the risk factor associated with the location. This can help in deciding the premium amount users should be charged.
- Location maps are built on the basis of claims made from an area in the past, this could determine the increase in risk factors, and a final premium is calculated on the basis of both risk assessment and claims management.
- To decrease the amount of premium and increase the number of claims, users may time falsify their location to get less premium amount, this factor can be mapped in GIS to find out such suspicious behavior in a specific location.
- GIS mapping can be used in different business locations to assess patterns of losses incurred. With precautions taken from GIS maps better business assessment can be done to decrease the risk of future losses.
- To ensure proper health insurance coverage, GIS is being used to find areas where rates of coverage are low or more likely to be at risk of not being covered, including factors (e.g., age, income, and health) that affect reasons for coverage. This also helps insurance companies know how and where to channel advertising efforts in order to get more people on board for health insurance plans.
- For auto insurance, spatial factors can be used to derive data that show regions where uninsured drivers are located. This can help drive insurance rates and channel marketing strategies.
- GIS helps to address misinterpretation and analyze suspicious behavior. Moreover, it identifies the location of the customer and understands where fraud happens to determine the process of compensation, restoration, and repayment.
- GIS provides better, safer, and cost-effective ways to assess risk. Dealing with risk is all about predicting the risk of the insurance industry and we offer a way to manage it better through GIS.
