Insurance is based on efficient risk management and much of risk depends on location. Which areas carry the highest risk? Natural or artificial areas? Who lives in areas where flooding is likely? Where is crime the greatest? What about the number of square feet in the home?
1. Location and socio-demographic variables as a basis to analyze risk based on the area as a whole – set premiums based on degree of risk, analyze the total portfolio risk… 2. Improve knowledge on clients, their needs and potential through corporate segmenting and by determining client value.
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