1 / 17

Alternative Data Sources for Modeling

This presentation explores issues to consider when appending alternative data, including legal and privacy concerns, data applicability and availability, and methods for finding matches.

ddamm
Download Presentation

Alternative Data Sources for Modeling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Alternative Data Sources for Modeling Presented by John Wilson CAS Special Interest Seminar – October 5, 2004

  2. Presentation Overview • Issues to consider when appending data • What about legal / privacy concerns • Considerations for data applicability / use • What data is available? • How to find matches?

  3. Legal / Privacy Concerns • Are we accessing FCRA database? • FCRA requires permissible purpose, or • Aggregated, de-personalized research files • If not FCRA data now, will it be? • Use of non-FCRA data for FCRA purpose can taint the database and create new obligations

  4. Data Applicability • Access - if not on-line now, can it be? • Coverage - full & complete, or “spotty”? • Reliability • Can it be pragmatically applied in workflow? • Is it subject to manipulation (“gaming”)? • Affordability (cost vs. benefit)

  5. What property data is available? • Data on the subject property • geography, construction, prior losses • Data on the insured • consumer credit data • prior losses • household profile • What else?

  6. Types of Data • Homeowners - Underwriting Report Data • Consumer Credit data • Loss History (CLUE) • Real Property data • Geographic data • Inspection Results data

  7. Types of Data • Consumer Credit • as a pre-developed score or scores • as a set of pre-aggregated characteristics • in “raw” form which must be aggregated • Prior Coverage Information

  8. Types of Data • Loss History data • as a set of pre-aggregated characteristics • losses at property, and / or • associated with consumer • exclude Cats • examine just property losses, or • examine prior auto losses as well?

  9. Types of Data • Real Property Data • County tax assessment information • Court records • Physical characteristics • Sale price • Other financial transactions • Flood Zone Determination (FEMA / NFIP)

  10. Types of Data • Geographic Data • Latitude / Longitude • Spatial Analysis • Satellite Images • Distance to _________ • Others?

  11. Types of Data • Inspection result data (internally captured) • Const. Style / type / stories / replacement cost • Slab / crawl / basement / daylight / finished • Number of BR, BA, Kitchens, total rooms • HVAC details, presence of pool, fence, etc. • Underwriting hazards? Remediation?

  12. Types of Data • “Demographics” • ages, number in household, education level • home business, est. income, occupation, etc. • “Psychographics” • magazines, TV shows, catalog purchases • survey results extended to all via geography • Coverage / Individual / Reliable / OK?

  13. Types of Data • Internal appends • past premium payment history • time with carrier, other coverages • experience on companion policy • deductibles, protection devices, etc. • Consider potential before ruling it out

  14. What auto data is available? • Data on the vehicle(s) • Data on the insured • consumer credit data • prior losses • household profile • driving practices / places • What else?

  15. Types of Data • Automobile - Underwriting Report Data • Consumer credit • Loss History - both lines! • MVR? - company captured • violations must be normalized • application may need to be state-specific • Prior Coverage Information

  16. Types of Data • Automobile - Underwriting Report Data • Vehicle Data • Home Ownership Verification • Household Composition • Demo / Psychographics • Internal appends

  17. How to find matches • Use consumer ID data to match • Full name • Address • SSN • DOB • DL # • ID must be removed prior to analysis

More Related