Location, Inc. Launches Structure Fire Risk Index for Insurers

February 18, 2016

Location, Inc., a provider of location-based data and tools used by corporations for risk analysis, has introduced a new risk index to help insurers address structure fire losses due to human negligence.

Insurers often associate structure fires with catastrophic events, such as wildfires or infrastructure failures (e.g. heating system faults). In order to gain a better understanding into these low frequency events insurers often factor in credit scores or public fire protection capabilities.

According to Location, Inc., the data sources above may provide some additional insights into structure fires, but do not fully address behavior-related incidents, such as arson or accidents involving cooking, improper appliance use, smoking, chimney, electrical, and other negligence- and property maintenance-related incidents.

With FIRE RISK Index by Location, Inc., underwriters and agents can factor in human negligence when assessing structure fire risk. Based on millions of policy years of fire loss data and over 20 proprietary geospatial models, FIRE RISK Index generates a risk score from 1 (lowest risk) to 10 (highest risk) for any address in the United States.

Dr. Andrew Schiller, CEO at Location, Inc. said personal and commercial lines insurers can use FIRE RISK to reduce underwriting leakage and improve by-peril rating by factoring in human negligence when assessing structure fires.

“In addition, since FIRE RISK provides risk scores, insurers can have Location, Inc. batch process their book of business and append risk scores to their policies. This will allow insurers to sort by score and quickly see which policies are high risk,” said Schiller.

Location, Inc. is a geographic research and data mining company born of university research. It provides location-based data and tools used by corporations for risk analysis. Location, Inc. specializes in location analysis, quantifying and mapping of crime and security risks, structure fire risk, demographic and school data information products, and location-based decision-making tools for businesses and consumers.

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