The outlook is bright
Ten years ago, it was no more than visionary thinking on the part of a few experts. In recent years, this has developed into technically mature applications and practicable tools which are indispensable in many risk management processes adopted by the insurance industry and commercial businesses.
Besides these technological advances, there is now a manifest willingness in the industry to take advantage of all available methods in order to increase the transparency of risks. This includes an intensive exchange of liability data and loss experience between all the parties involved, although data protection regulations must be observed. If we look at the “Anglo-Saxon” markets, we will see how efficiently geodata can be integrated in complex work processes nowadays.
A striking example of how fast technological developments can determine the behaviour of manufacturers, consumers, and the markets is given by vehicle navigation devices. When launched just a few years ago, they were only available at the luxury end of the market. Now they can be bought at the grocery discounter around the corner.
If we look at the “Anglo-Saxon” markets, we will see how efficiently geodata can be integrated in complex work processes nowadays.
If the dynamic pace of technological innovation is maintained, we could have a situation in ten years’ time in which field staff and insurance experts carry out risk inspections with online access to the comprehensive up- to-the-minute information necessary for evaluation and rating. It is also conceivable that they will assess – at the press of a button – how a new risk influences a company’s overall portfolio or its commitment in a certain class of business and how high the percentage share would be in the event of a loss. This is still very far off – but the direction is clear.
Munich Re will partner its clients with intensive support through a wide variety of geoservices, consulting, and training packages on this innovative path towards maximum risk transparency.
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