Data Visualization and Analysis Tech as CAT Management Tools

The widespread devastation from the recent earthquake and tsunami in Japan follows a string of major natural and manmade disasters -- including the New Zealand and Haitian earthquakes, severe winter storms across the continental U.S., flooding in Australia and even the BP oil spill -- that have presented insurers with unprecedented tests of their catastrophe risk analysis and management capabilities. What have these disasters revealed about the insurance industry's ability to forecast, analyze and underwrite catastrophe risks? What tools and technologies do insurers need to manage these risks and respond to policyholders when catastrophe strikes? --Peggy Bresnick Kendler

The effectiveness of an insurer's response to a catastrophic event hinges on its ability to synthesize large amounts of data to truly understand the impact. Once the data is analyzed, the information must be presented to a broad set of stakeholders in a meaningful format so critical decisions can be made. Forward-thinking insurers are embracing web-based data visualization and analysis technologies to better manage their responses to major disasters.

Typically, in the days and weeks following an event, insurers are plagued with analysis and reporting bottlenecks. Analysts capable of creating maps and reports work feverishly to respond to requests for information. Because new data is generated on a continual basis even after the event, the data has a short shelf life and reports need to be regenerated and redistributed.

When an event such as an earthquake occurs, users throughout an insurance organization can access a web-based data visualization application to visualize and analyze the impact. Users can quickly determine which properties were subject to specific shake intensities and can visually build analyses on their own, rather than waiting for a report. The interactive nature and rich visual user experience provide a deeper understanding of data than a static report. As a result, insurers have a better understanding of their exposure and can respond to the event more quickly and effectively.

The benefits of self-service visualization and analytics are not limited to event response. Insurers that empower their users with visualization and analytic technologies can better understand overall exposure, improve risk mitigation and more profitably serve their customers.

Tom Link is CEO of Westfield, Mass.-based SpatialKey.