A comprehensive understanding of the properties exposed to catastrophes is essential for risk modeling. AIR developed the first industry exposure database more than 20 years ago and continues to innovate with the development of a unique property-specific database for the United States.
Industry Exposure Databases
AIR construction engineers, demographers and statisticians have developed an industry exposure database (IED) for every country modeled by AIR. Each IED is built from the bottom up to develop an independent, high-resolution view of risk counts, building attributes, and replacement values at various geographic resolutions.
AIR IEDs account for all insurable exposures—that is, any property that could be insured by the private market. This data is the basis for AIR’s real time industry loss estimates and underlies AIR’s CATRADER® software.
AIR IEDs are instrumental in helping individual companies better manage catastrophe risk. Companies can validate their own loss distributions by comparing detailed loss results from all models against CATRADER industry losses. Using the TruExposure™ benchmarking module, companies can assess exposure data quality by comparing the construction, occupancy, and replacement value mix in individual portfolios to industry averages as represented in AIR IEDs.
Property-Specific Data
TruExposure property-specific data currently provides replacement value, construction, occupancy, year built, number of stories, and other building characteristics for more than 5.7 million of the estimated eight million commercial buildings and 60 million of the estimated 90 million residential buildings in the United States.
TruExposure property-specific data is unique in the insurance industry. It’s comprised of the extensive data assets from AIR’s parent company, Verisk Analytics and its subsidiaries. These include ISO site-inspected building data, ISO PushPin, and 360Value®.
Each property characteristic goes through quality control checks, is coded for catastrophe modeling, and is assigned a quality grade before it is added to the database. Companies can confidently use TruExposure property-specific data to enhance building information for two-thirds of all buildings in the United States.
Listed below are additional materials of interest on AIR property databases:
