Why These Industries Consider Hazard Data An Indispensable ToolAugust 6, 2019Data Visualization, Hazard DataBy: Ishveena SinghShare: TwitterFacebookLinkedInEmailNatural hazard data is a crucial resource in industries that conduct data-driven risk mitigation.Risk management is an integral responsibility for any business. Effective risk management strategies allow organizations to plan for unexpected events and empower them to make future business decisions more confidently. The first steps in this process are an accurate vulnerability assessment and identification of risks, which can only be achieved with complete, reliable, and current hazard data.As part of our deep library of map-ready content, our hazard data is used by professionals across a multitude of industries to understand their exposure patterns and to take steps to mitigate any risks. Let’s take a look at how a few of these industries are leveraging our datasets in their risk management workflows. Hazard Data is the Backbone of the Real Estate SectorIn today’s competitive real estate market, site-specific insights are essential for granular risk calculation. In order to find quality land quickly and make smart deals, both commercial and residential real estate professionals need to rely on hazard data in addition to property characteristics. In commercial real estate, the accuracy of this data becomes a crucial factor in the ability to sell profitably in a sustainable manner. Commercial real estate brokers, builders, and land developers depend on hazard data to find the right land for their customers and to evaluate it in a precise manner. Since they need to consider everything from the history of natural hazard occurrences, their actual impact, and future probabilities, they rely only on high-quality, systematic, and consistent data.On the residential side, online real estate companies often seek specialized datasets, such as storm surge and lightning, in addition to information on the primary environmental risks from air, water, fire, and earth. They also deploy indoor health hazard data to understand the risks that could potentially affect single-family homes or multi-family dwellings within a region. Some of the most extensively demanded health risk datasets by online real estate businesses include lead, asbestos, aluminum electrical wiring, and other hazardous building materials.How Hazard Data Impacts Communications, Utilities, and Pipeline OperationsReal estate is not the only industry that plans for new development and vulnerability reduction with the help of hazard data. Several other asset-heavy consumer markets use this data to inform future growth and daily operating risk mitigation.Telecommunications companies use hazard data to make their networks more resilient and to improve organizational readiness in case of an emergency. By analyzing the occurrences and impact of historical floods or hurricanes, operators are able to develop plans to minimize the impact on their service.Similarly, oil and gas distributors leverage map-ready content to make data-backed decisions about land acquisition, lease management, and pipeline planning. By proactively identifying any areas with high seismic activity or flood risk, oil and gas companies are able to mitigate the risk of human and environmental harm.The same metrics apply to utility providers as well. Hazard data simplifies property research and project planning even if the project spans multiple municipalities. By overlaying flood and wetlands information, utilities can easily assess the distance from a parcel or project boundary to nearby hazards.Hazard Data is a Must-Have Tool for Financial ServicesNot many industries understand risk better than financial services. Traditionally, mortgage banks and lenders have focused their energy on the borrower’s repayment quotient. However, since catastrophic events are becoming more frequent than ever, mortgage originators are increasingly turning to hazard data to determine what impact a disaster could have on their loan portfolio. Servicers interested in measuring disaster impact at a macro level also leverage specialized datasets, such as flash floods, storm surge, wind damage, and sewer backup.Just as hazard data allows lenders to see how their mortgage portfolio may be impacted by natural disasters, this data informs the risk appetite of property and casualty insurance providers as well. As an example, an insurance company can overlay policyholder concentration in a seismic zone to develop a precise risk profile. Further, hazard data directly impacts the premium rates an insurance provider charges in a particular geography: the higher the risk, the higher the insurance premium will be. For example, people living in coastal areas are often charged higher premiums because they are more prone to flooding.While home and business owners look to lending or insurance professionals for sound advice about their biggest financial assets, financial services providers depend on hazard data to understand the risks in the areas they serve and assist their clients better. But since hazard data is dynamic and can change on an annual, quarterly, or even monthly basis, it is imperative that the data provider utilizes complete and up-to-date information to deliver maximum efficiencies.Learn MoreKnowing where a hazard is located enables organizations to either mitigate its potential impact or avoid it entirely. If you’re interested in learning how our hazard data can help your business, contact us today or sign up for a free demo to see how our map-ready data can help you make more confident decisions.