The company said the program has three main functions of risk data assessment:
• Validation – Determines the “completeness and reasonability” of data location
• Benchmarking – Exposure data comparison with industry averages, relating to value, construction, occupancy and market share in given geographical regions
• Augmentation – Replacement cost estimates when data is nonexistent or of a questionable source
AIR’s program offers users TruExposure Data Quality Report, which the company says encompasses the risk data assessment—validation, benchmarking and augmentation—and also leverages two sources the company says are unique, including the U.S. industry exposure database, and TruExposure property-specific data.
“Enhancing the quality of exposure data used for catastrophe analysis has been identified by most insurers and reinsurers as a top priority since Hurricane Katrina,” said Uday Virkud, P.E., EVP. “Ideally, high-quality exposure data will be captured during the insurance underwriting process and propagated through the risk transfer chain. As the industry strives to reach this goal, AIR has launched TruExposure to help insurers and reinsurers assess and enhance exposure data efficiently and cost-effectively.”
