Catastrophe management services provider Risk Management Solutions (RMS) and building costs solution provider Marshall & Swift/Boeckh (MS/B) have created a combined risk analysis and property valuation solution.
BVS Express, MS/B's internet-based property valuation system is to be integrated into RiskBrowser, RMS's enterprise underwriting system for property insurance. The new solution is due for release in the autumn of 2004.
RMS said the solution would allow underwriters to automatically estimate replacement values for properties without the need for dual data entry. Locations where calculated values differ from submitted values by more than a pre-defined threshold will be flagged for investigation.
The underwriter can then use the validated property values in RiskBrowser to improve their analysis of catastrophe risk from natural perils and to improve their assessment of the impact of new submissions on existing accumulations around potential terrorist targets, said RMS.
“The emphasis on underwriting performance is continuing to escalate in the property and casualty insurance industry,” said Hemant Shah, president and chief executive of RMS.
“Many of our clients are making significant investments to improve the quality of the data they use for risk assessment and pricing. Property values are the key driver for accurate risk quantification for pricing, risk selection and accumulation management.”
Bob Dowell, president and chief executive of MS/B, stressed the importance of property valuation. “Property valuation is an area of significant concern for the insurance industry.
“Today, 75% of commercial properties are undervalued by an average of 40%. Accurate, systematic assessment of appropriate property values is critical to improving insurance companies' financial performance.
“By partnering with RMS, we can help insurers address this issue where it can be managed most effectively – at the point of underwriting.”
