The purchase of a book of Run-off business in the insurance world is similar to the purchase of a country home. The huge financial risk involved needs investment up-front to scrutinise potential issues that might arise once conveyancing is complete.
With a house, we use local searches, radon gas measurements, drainage inspections and a full structural survey. However, even the most scrupulous, risk averse homebuyer will find surprises once they come to live in and with their purchase.
With run-off books, the risk is a data risk. Standard actuarial analysis of policies, known claims, unknown claim likelihood and long-tail claims hinges cannot supply full knowledge. The reason? Because most run-off data rests only in what has been processed into structured data formats: spreadsheets, data warehouses.
360Retrieve is an unstructured data profiling tool whose value to those taking on run-off books rests in its ability to surface crucial claims information that can otherwise remain hidden to book purchasers. It also enables a ‘One World’ view of data at either book or more granular levels by combining unstructured data insights with those from structured and semi-structured sources.
It’s estimated that only 20% of available data about claims ever makes its way into structured formats. The remaining 80% – that may include the tell - tale signs of those injury claims with latent unrecognised potential, otherwise known as incubated claims, zombie claims or sleeper claims - may well be wrapped up in file formats that escape attention let alone analysis. Emails, PDFs, images, letters, forms and other information that never reaches structured analysis tools.
In claims, a stitch in time often saves a great deal more than nine. With run-off books – sometimes including 10s of 1000s of semi-opaque risks - 360Retrieve can allow claims profiling access down to any level of detail, wrapping up everything hidden in unstructured and semi-structured data.
In deployment, patterns and trends can easily be monitored against the run-off claims portfolio benchmark to identify any outliers and or variations within the portfolio.
In house buying terms, it offers the ability to peak into the diary of the previous homeowners, to see every secret locked away in knowledge that would otherwise remain hidden.
Risk can be mitigated. But only so long as it can be understood – fully.
A no-obligation chat with us and a demonstration if you wish, will reveal very quickly how 360Retrieve – from 360Globalnet, which powers the digital claims handling of some of the globe’s most notable brands – can help you to help yourself.
Click here if you'd like to learn more about our run-off insurance analysis software.
