Creating Competitive Advantage for Insurers with Spatial Information

This Financial Insights report proposes that insurers use spatial information as a key enabler of building and maintaining a strong competitive position.

Barry Rabkin, senior research analyst, Insurance Advisory Service, states, "Competitive advantage is hard to find and harder yet to keep. For the insurance industry, which is 400+ years old, competitive advantage has proven to be a very rare capability. However, leading insurance companies will use spatial technology to determine the where and when of potential and actual loss events and the impact of those loss events on people, places, and physical artifacts to create a stronger competitive position in their markets of choice. The stronger insurers will be the ones using spatial technology to establish target markets, dynamically identify risk accumulation at points of inspection or underwriting, and provide spatially customized service to claimants, policyholders, and producers."