Experian reveals UK hotspots for man-made perils

Experian reveals UK hotspots for man-made perils

Nottingham, 1 February 2010 — Experian^®, the global information services company, today revealed the UK’s hotspots for malicious damage, escape of water and accidental damage insurance claims.

By analysing claims data from leading insurers alongside a wide range of demographic and lifestyle attributes, Experian has created a new series of Perils models. These predict the likelihood of a man-made peril event in a given location and the financial loss insurers are exposed to.

As a result, Experian has created risk indices - ranking areas of the UK according to the number of households in each postal area that feature in the highest risk band for each Peril nationally against the total number of households in each area.

Experian’s data insight shows that Liverpool, Birmingham and Coventry are prime locations for malicious damage to households and vehicles insurance claims. Over 40 per cent of households fall into the highest risk band. Households in Liverpool, the most at risk postal area, are three times more likely to be included in this grouping than the UK average.

Areas in the East of England feature strongly in the highest risk locations for escape of water and accidental damage claims. Cambridge, Ipswich, Norwich and Peterborough occupy the top four places in both risk rankings, due to the concentration of the types of houses and households that see high instances of these claims.

Gavin Snell, Managing Director of Consumer Information Services at Experian, said: “By delving deep into insurance claims data and comparing it against a whole host of demographic and lifestyle attributes, we are able to define patterns that provide very accurate predictions of risk.

“For example, there are high instances of accidental damage amongst families with grown-up children and the wealthy retired; escape of water is most common amongst financially stable families living in detached houses built after 1980; and malicious damage is particularly frequent in densely populated inner- city neighbourhoods.

“By considering these and many other factors together, insurers will have hugely valuable information to help with the pricing of their policies.”

Experian offers a range of Perils models to help insurers manage risk. Other Perils models in the range assess exposure to flooding, subsidence, windstorm, fire, freeze and theft.

ENDS
Contact:
Chantal Heckford / Jennifer Comerford / Duncan Skehens
Lansons Communications
020 7490 8828
chantalh@lansons.com / jenniferc@lansons.com / duncans@lansons.com

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2009 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com.

Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.