Sagent Technology Inc., a provider of business intelligence solutions, unveiled its fire protection classification application for property and casualty insurers. According to the company, the system, which utilizes Sagent’s geographic determination suite of tools, enables the insurers to immediately determine at the point of customer interaction how close a home or business is to a fire station.
According to the company, the new Sagent fire protection classification application for p/c insurers includes the first national database of fire station locations. Sagent is offering a complete solution based on the AAIS simplified fire protection classification system – one that will utilize Sagent’s geographic determination suite of tools, including address standardization, geocoding, spatial analysis and the fire state database. Using this new product, p/c insurers can accurately and immediately determine at the point of customer interaction how close a home or business is to a fire station – a critical rating variable for those insurers in order to underwrite policies.
The company affirms that unlike similar products, the Sagent fire protection classification application for property and casualty insurers is not based in transaction fees. As a result, it becomes more cost-effective now for p/c insurers to use those ground-breaking technology for both quoting and binding policies.
Homesite, a direct-to-the-consumer insurance company, is a Sagent customer doing just that, filing this method in 21 states without any regulatory issues.
Additionally the Sagent fire protection classification application uses a simplified method for determining fire protection classification application uses a simplified method for determining fire protection classification. This method is based on calculating the distance between a home or business and the fire station and the availability of water.
After finding that distance, insurers can determine the “risk” of the dwelling and label it as “protected,” partially protected,” or “unprotected.” The theory commonly followed by the p/c industry is that the dominant factor in the ability of a fire department to save a dwelling is how quickly fire fighters can get to it. Insurers using the Sagent classification application and the first national fire station database was developed to positively answer to that theory.
And, as insurers move to multiple channels of delivering policies, such as the Internet and call centers, having technology such as Sagent’s Fire protection Classification application to assign key underwriting variables in an automated, consistent fashion across these channels has become critical to the industry’s success.
Miller Herber Lehman & Associates Inc. (MHL), an actuarial consulting firm, has recently examined the Sagent fire protection method and compared it with some of the other systems currently in use by insurance companies. In particular, the consulting firm was asked how Sagent’s method would compare to the protection class method used by Insurance Services Office (ISO) — a well-known supplier of statistical, actuarial, underwriting and claims information to the p/c insurance industry.
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