Why data quality is now a must for insurers
Solvency II Data Quality
Why data quality is now a must-have for insurers.
Data quality and maintenance of that data is key requirement of Solvency II
Data quality should be measured against the scale of the problem seeking to be modelled
Underwriting and risk occur at a property level, therefore property level data is a must for models to be accurate, and appropriate.
A complete consideration of property-level risk can only occur with a robust address database and independently validated information on each and every property underwritten.
Vulnerability and repair costs from shock events vary significantly between properties of different age and type. Postcode analysis misses these significant variations.
To be realistic, data and models must be maintained and updated on a regular basis
Meeting Solvency II requirements is not the end, continued investment and effort is required to maintain the data and models to ensure they reflect reality.
This white paper sets out to explore, in two parts, the practicalities behind the data quality requirements set out in Solvency II.
The paper is from the viewpoint of property underwriting and risk management.
Part 1 looks at the background and the requirements for Quality data
Part 2 looks at what quality data looks like with reference to properties, both residential and commercial.