Driven by our algorithmic pricing engine, here at Vave we take a data-first approach to underwriting; bringing automation, efficiency and precision to a suite of dynamic products that fit policyholder needs. This allows us to not only proactively adapt to dynamic market conditions to provide accurate real-time quotes, but also satisfy the growing demand and complexity in the US E&S market.
Since launching in 2019, whilst expansion of our distribution network and geographic footprint has played an important role, the driver of the flood products steady growth is the continual refinement of our underwriting appetite and pricing sophistication – our ability to identify and target the specific segments of the market where we can be most competitive. Achieving this requires robust real-time monitoring, high-quality hazard data, and the ability to translate data-driven insights into active, fast paced decision-making, all of which have become core to our operating model.
When first building out the product, one of Vave’s biggest challenges was securing granular, reliable, and consistently structured flood hazard data. Not only that but we needed partners who can support our fast-paced, algorithmic underwriting workflow, whilst simultaneously providing detailed risk level information to be used in building an accurate view of the risk and ultimately calculating a premium.
Over time, our relationship with KatRisk has evolved from a sole data provider arrangement into a strategic partnership. As the flood product has grown, we’ve expanded the range of data points we use, integrated these outputs more deeply into our pricing engine, and collaborated with the KatRisk support team to ensure their outputs align with our underwriting needs as they have evolved.
As well as their high-resolution data granularity, KatRisk stood out in the market due to their transparent and robust methodology in building their flood hazard layers, offering a great balance of accuracy and usability that aligns well with our operating model. With their data we are able to assess risk at the location-specific level using a multitude of flood risk indicators, improving the precision and sophistication of our pricing – especially in complex inland flood zones where FEMA maps alone are insufficient – and enabling us to confidently expand across the USA as both our appetite and external market conditions evolve. Their high quality hazard data has allowed for better segmentation of risk, and subsequent identification of desirable pockets of business that align well with our appetite, yet were previously difficult to distinguish.
Ultimately, working with KatRisk has driven improvements that have directly supported the growth of our flood product, allowed us to deliver more competitive prices to consumers, and strengthened our position in the market.
