The opportunity for real time crisis response in the property insurance industry

Organisations face increased complexity in identifying and managing risks to their operations. Critical to business resilience is the need to proactively identify and mitigate risks as a complex situation evolves. The nature of hazards applicable to geographically dispersed Organisations are significant, from environmental matters through to man-made issues such as crime. Seasonality is also apparent, along with very localised idiosyncrasies, which demonstrate the need for agile, reactive organisations to have a structured, scalable and collaborative approach to managing risk and maximising resilience.

Balkerne has reviewed numerous case studies of substantial property loss events due to fire, flood, wind damage and crime from both publicly available data and data provided by insurance stakeholders. Balkerne’s key findings are:

  • Organisations who seek to manually improvise crisis response measures will commonly fail, through an overly chaotic and linear approach.

  • Consistent and coherent structuring of real time data sources will generate exploitable information to plan and enable effective action.

  • Every crisis event will be dynamic and if the power of real time information can be harnessed, organisations can both communicate and respond dynamically.

  • Constant monitoring of real time information enables an understanding of trends and their changes. Outcomes such as incremental changes over time and near miss events matter and cannot be identified without automated processing.

  • The first indications of the beginning of a crisis, together with the peak of a crisis, will often occur at chronological points of organisational weakness, from the middle of the night or key national holidays.

  • Anticipating harmful events is a necessity, clarity will evolve as an event unfolds.

  • Organisational cross functional collaboration is an imperative to manage real time risk. Harnessing all sources of data and accompanying interpretations is necessary to achieve the best possible information and the making of better decisions.

  • The timeliness and relevance of information identified and processed is directly linked to the success of a mitigation action.

Balkerne’s development approach to providing a real time monitoring and alerting functionality within SmartResilience, has been to focus on the need for hyper-local, risk context specific information. The core objective is to empower organisations with a competitive advantage of greater knowledge of an evolving situation, to act with agility, speed and simplicity to protect business, social value and deliver financial benefit.