This dataflow template demonstrates how an insurance company could accurately assign the right territory to every policy in order to calculate the correct premium and avoid market-conduct fines. Territories can be geographically complex and quite often do not follow ZIP Code boundaries. This frequently leads to territory assignment errors. Assignment errors mean that incorrect premiums are being quoted or charged, which creates both customer retention problems (when overcharging occurs), and premium revenue loss (when undercharging occurs).templates
This template illustrates one way of using Spectrum™ Technology Platform to improve the accuracy of rating territory assignment.
Template name: DetermineInsuranceRatingTerritory
Sample input file name: LatLong.csv
Modules required: Location Intelligence Module
You work for an insurance company. A recent audit has revealed that rating territories for homeowner policies are being incorrectly assigned at an unacceptably high rate. Your company has undertaken an initiative to analyze existing policies and correct the territory assignments where necessary.
In order to determine the insurance rating territory, you need to have a valid address and the latitude/longitude coordinates of that address. You have an existing process in place that corrects and validates addresses and determines the latitude and longitude. You need to take the latitude/longitude and compare it against your insurance rating territories.
The following dataflow provides a solution to the business scenario:
This dataflow reads a file that contains addresses and policy numbers. The Location Intelligence Module's Point In Polygon stage determines which insurance rating territory each location resides in. Point In Polygon identifies the insurance rating territory based on a user-defined boundary file that contains the locations of your company's territories. Finally, the address, latitude/longitude, policy number, and rating territory information are written to a file.
This dataflow template is available in Enterprise Designer. Go to DetermineInsuranceRatingTerritoryand select
Each stage is described in detail below.
The first stage reads the file that contains the addresses you want to match to insurance rating territories. In addition, the input file contains the policy number associated with each address. This policy number is assigned to the InputKeyValue field, which is for user-defined data.
The Point In Polygon stage is where the insurance rating territory is assigned. In order for Point In Polygon to identify the insurance rating territory, you must supply a user-defined boundary file. A user-defined boundary file is a file that describes the location of your territories. This file must be in a specific format. Once you have created this file, you must define it as a database on your system using the Management Console. For additional information, see the Spectrum™ Technology Platform Administration Guide.
Once you have created and defined your boundary file of territories, you select the file in the Database field. This indicates which areas you want Point In Polygon to match against.
Since the latitude/longitude format from GeocodeUSAddress is in decimal format, the Coordinate Format field is set to Decimal.
This stage defines the location and layout of the addresses with their geocode, policy number (the InputKeyValue field), and insurance rating territory information. Note that you will have to specify the specific fields to include based on your territory data file.