September 8, 2016
An Opportunity in Resilience Analytics? Summary: Claims data gathered by insurers ? historically used to price and manage risk ? could be used to reduce the potential for damage before the event. By: Nick Martin
In my post last monthSee also: InsurTech Need Not Be a Zero-Sum Game As well as providing low-cost distribution models in new markets, a related opportunity I see for insurtech is working together with the insurance industry in the growing field of resilience analytics. As Robert Muir-Wood recently pointed out on RMS' blog, the claims data gathered by insurers ? which historically has been used for the pricing and managing of risk ? have the potential to also be used to reduce the potential for damage before the event. Insurtech companies could work with government authorities to pool this claims data, leveraging it with other key data from external sources and then using the results to influence urban resilience strategies. There are inevitable doubts over the willingness of insurers to share their data, but agile and thoughtful startups are likely better placed to be able to find insights in a world of abundant unstructured data than the more technologically challenged incumbents. The current size of the protection gap is a failure of the insurance industry, and any companies that can help address it will not only be first movers in new markets but will also be adding social value and much-needed resilience to vulnerable communities all over the world. Nick Martin
[email protected] Nick Martin is the manager of the Polar Capital Global Insurance Fund. He is a mentor on the Startupbootcamp InsurTech program and likes to help startups navigate a complex industry.
