Irish Insurance Providers Empowered to Forecast Perils Risks 

Wed Jan 17 2024

Following the series of storms that have impacted Ireland, not least Storm Babet, taking advantage of perils data to predict and plan for weather events has become crucial. With a clearer picture of the properties on their books, Brokers Ireland members can offer the most appropriate cover at the right price to their customers looking for commercial property and home insurance protection.

Some weather stations in County Cork recorded over 100 mm of rainfall in a 36-hour period during Storm Babet. In Midleton, one of the worst-hit communities, 250 homes were flooded. River Owennacurra, which flows through Midleton in Co Cork, Ireland, recorded a streamflow of 25.9 cubic meters per second on 18 October 2023, equating to a 1-in-135-year event for this location[i].

Geospatial data intelligence on flood as well as fire, subsidence and windstorms along with other local hazards and crime rates can help Irish insurance providers to calculate the likelihood and cost of an insurance claim and calculate their exposure to risk in near real-time. This granular data intelligence can be used to enrich a quote alongside highly granular property data characteristics and data insights pertaining to the applicant for an instant picture of risk. This knowledge up front can put Brokers Ireland members at a distinct advantage in determining the suitable products for the risk of the property at a fair and accurate price.

Alternatively, many insurance providers including brokers and MGAs are choosing to visualise geospatial data intelligence through LexisNexis® Map View. This can offer Irish insurance providers even greater visibility into environmental and perils risks across the whole of their book to help price more accurately, plan resources for extreme weather events and manage claims.  Perils and Accumulation scores are supplied via a point of quote API or a User Interface optimised for and widely used by the insurance industry.

We have found that insurance providers who use this geospatial data visualisation tool typically see a 50% reduction in flood exposure and 8% improvement in new business targeting[ii].  They can assess and filter both policy and perils data, ensuring the quotes or policies with the highest level of risk stand out.

Irish Insurance providers can also import files such as storm tracts or create new zones for the identification and analysis of on-cover policies.  Added to this, a range of additional capacity management tools help insurance providers target areas where they can sell more business in large cities and automatically identify where they have areas of high concentrations of Sums Insured.

The home and commercial property insurance market in Ireland is facing pricing pressures that demand a deeper understanding of risk as climate change and severe weather events continue to have a significant impact on loss ratios and portfolio management.  Our data enrichment solutions allow Brokers Ireland members to understand location and property risks at a highly granular level, helping you to price with pinpoint accuracy, determine the right product for the risk, manage your portfolio and take immediate action to limit your exposures based on real-time data.

Shane McCabe, insurance strategic account manager, LexisNexis® Risk Solutions, Ireland

[i] Source: Analysis conducted for LexisNexis Risk Solutions by JBA

[ii] LexisNexis Risk Solutions Research


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