GIS Development Manager
IAG Direct Insurance - Geospatial Information
Hugh Saalmans
Linking millions of
people, policies and places
insurance & IAG
pricing & location based risk
geocoding & addressing
G-NAF
agenda
insurance & IAG
pricing & location based risk
geocoding & addressing
G-NAF
agenda
insurance & IAG
“...the business of manufacturing promises”
~ Warren Buffet, 2012
what is insurance?
insurance is a sizable industry
$19,689,000,000
1.3% GDP
Source: APRA June 2012 Quarterly GI Performance Statistics
claims paid p.a.
insurance & IAG
pricing & location based risk
geocoding & addressing
G-NAF
pricing & location based risk
agenda
pricing is affected by…
reinsurance costs
pricing is affected by…
industry competition
pricing is affected by…
government
fees & charges
but most affected by…
how often a customer will need to make a claim; and
but most affected by…
...how much it will cost each time
to predict claims and claims cost - we need to determine the risk of something happening
to do that, we start with each property’s location and then assess its risk
location based risk
bushland
location based risk
distance to bushland = a bushfire risk factor
park
bushland
location based risk
distance to parks = a burglary risk factor
park
bushland
location based risk
distance to main roads = a collision risk factor
park
bushland
location based risk
regional geology determines earthquake risk
G - N A F
calculating location based risk
geocodingL O C A T I O N
G - N A F
calculating location based risk
spatial relationshipsWhat’s nearby?
geocodingL O C A T I O N
G - N A F
calculating location based risk
modellingWhat could happen?
spatial relationshipsWhat’s nearby?
geocodingL O C A T I O N
G - N A F
calculating location based risk
claim frequencyHow often?
modellingWhat could happen?
spatial relationshipsWhat’s nearby?
geocodingL O C A T I O N
G - N A F
calculating location based risk
damage curvesHow severe?
claim frequencyHow often?
modellingWhat could happen?
spatial relationshipsWhat’s nearby?
geocodingL O C A T I O N
G - N A F
calculating location based risk
insurance & IAG
pricing & location based risk
geocoding & addressing
G-NAF
geocoding & addressing
agenda
DI & geocoding
why? geocoding is the only cost effective method of locating risks, at the property level, on a national scale
1:1 pricing - a foundation of our strategy
What do we use?
geocoding
DI & geocoding
status? geocoding and geo-pricing rolled out nationally
geocoding
100% overall geocoding rate
>95% household geocoding rate
what is geocoding?
what is geocoding?
converting addresses into usable locations
3 areas for improvement
1. input addresses
2. address matching
3. reference addresses (G-NAF)
geocoding
UNIT2LEVEL310-20ALFREDSTREETNORTHNORTH SYDNEY2060NSW
need a good
address structureStreet 2/3/10-20 Alfred St N
Suburb Nth Sydney NSW 2060
legacy addresses will need to be cleansed
input addresses
sub-dwelling typesub-dwelling no
level typelevel no
street numberstreet name
street typestreet suffix
localitypostcode
state
good address capture has:
structured input
predefined pick lists
rapid address lookup
input addresses
locality issues
local names vs gazetted
e.g. 96% of customers provide an unofficial suburb name in Tamworth
input addresses
locality issues
vanity suburbs
input addresses
Kingswood
Heights
the geocoding engine
evaluate, reconfigure, test it
G-NAF 360o test (geocode G-NAF itself)
address matching
the geocoding engine
add your own logic
talk to your vendor
address matching
insurance & IAG
pricing & location based risk
geocoding & addressing
G-NAF
agenda
G-NAF
is it any good – yes it is
errors – yes, but limited
completeness - ~95% complete
timeliness – can take up to 12 months for new addresses to be added
G-NAF (reference addresses)
errors
mostly transient
range from amusing to business impact
can impact customers
use DIY database rules and QA to limit the impact
G-NAF
errors
examples:
units being 1km from their building address
addresses assigned to the wrong duplicate locality
alias and principals with diff. cords
G-NAF
completeness
postcodes sparsely populated on addresses
G-NAF
completeness
sub-dwellings generally don’t have unique coords
Your customer data can be an additional “G-NAF data source”... use it!
G-NAF
timeliness
Some new houses are insurable before address is in G-NAF
That’s why G-NAF Live is encouraging
G-NAF
location is fundamental to insurance
geocoding - 3 areas of improvement (to get >95%)
addresses – clean, structured, well captured
engine – tested, optimised, customised
G-NAF – postcodes, sub-dwellings,
G-NAF Live
summary