Comprehensive Data Determines Property Risk Before Disaster Strikes
News Ever wonder who’s behind those pre-disaster billion-dollar figures you hear on the news?
How can data and analytics aid in disaster response?
CoreLogic provides comprehensive and granular data and analytics to help the insurance and real estate industries to better understand commercial and residential property risk, streamlining the processes needed to accelerate recovery in the event of a disaster. In action, this means businesses and individuals should do all they can with this data to understand what will happen before a catastrophe allowing you, your family and your business time to engage proactively in protective activities.
What kind of analytics do you evaluate before a disaster?
CoreLogic evaluates deterministic and probabilistic data ahead of a natural disaster. Deterministic data overlays a hazard score across a geography to help determine that particular property’s risk. We look at those hazard scores across a range of perils, such as coastal storm surge, flood, flash flood, wind and others, to reflect the likelihood of that risk occurring without consideration to a specific event. Probabilistic data looks at various scenarios that could happen by overlaying projected peril’s footprint on a geographic area to identify the numbers of homes at risk. We complement initial deterministic scores with this probabilistic insight along with added property characteristics, such as year built and square foot, to develop a refined, monetized damage and loss projection, which is used to build an understanding of a region’s potential economic losses.
How do these analytics play a role after a disaster?
Catastrophe loss analytics play a large role immediately after a disaster occurs, spanning the time until traditional surveying and response resources can develop a complete picture of what happened. There are many industries and organizations that use post-event catastrophe analytics, such as insurers, seeking to serve their policy holders with adequately staffed claims centers and sufficiently funded claim payment resources; utilities, looking to triage the repair of their transmission and distribution networks; and oil and gas companies, who will react to reports of damaged platforms and refining facilities to adjust prices.
How do you communicate this data to insurers, lenders, first responders and other support teams?
Communication of this type of information is highly customized for specific customers. Parcel and property data is standardized and normalized for emergency management and first responder consumption so that all authorized government agencies can access the same data assets and coordinate event response activities. In a similar fashion to the way advanced preparation, and planning, by homeowners and government agencies is recommended prior to disaster striking, it is also key for insurers, lenders, first responders and other support teams to have access to the right data for their related facets of emergency preparedness.
After a disaster, how do you evaluate the impact to the housing industry and economic recovery?
First, we monitor material and labor costs around the affected areas. We tighten our search zone and increase frequency to report any reconstruction cost spikes, which can affect carriers during the claims process. Second, we look for labor and housing supply indicators in an effort to identify demand surge. Demand surge is the spike in cost of materials, labor or contract bids during reconstruction phases. One aspect of this analysis is to help stabilize an insurance carrier’s book of business by separating normative construction cost increases from temporary surge spikes and assisting insurers in producing accurate insured-to-value numbers.