University of Limerick Uses Xactware Claims Estimate Data to Evaluate Business Class
Several academic journals have recently published articles discussing how the Business Studies programme at University of Limerick used Xactware claims data to evaluate 435 undergraduate students as they developed skills in insurance loss risk assessment.
For a 10-week period during fall semester 2009, the students participated in the Insurance Loss Market, a simulated prediction market where they learned to forecast likely future insurance losses, handle portfolios, and use diversification to manage risk. Estimate data provided by Xactware, a leader in claims management solutions for the property insurance industry, played a role in gauging student progress throughout the module. The results of the course were summarised in articles that have appeared in the April 2011 issue of Computers & Education and the December 2010 issue of Journal of Teaching in International Business. The article will also appear in Risk Management and Insurance Review later this year.
“Oftentimes, the academic environment provides few opportunities to students where they can apply what they learn in the classroom to real-life scenarios,” said John Garvey, a professor of applied economics who taught the course and coauthored the articles. “The data provided by Xactware accurately reports trends currently unfolding in the insurance industry so students can quickly see how they would perform in a realistic environment.”
Each Monday morning, students were given 5,000 units of notional risk capital to invest in a portfolio of insurance losses. Using historical information — such as recent weather patterns, insurance hazards, and loss statistics — the students then predicted what insurance losses would occur over the week in New York, Florida, and California. At the market close each Friday, their forecasts were evaluated against real-time weekly loss estimate totals supplied by Xactware.
The estimate data provided to the Business Studies programme at University of Limerick came from XactAnalysis, the leading claims management network in the property insurance industry. Since its inception, XactAnalysis has helped property insurance professionals electronically send and receive claim assignments. Its real-time management reports provide managers with analytical tools to track individual claims, monitor company and industry trends, check company standards, and pinpoint areas for training. The network also contains inspection algorithms carriers can use to audit estimates and find potential errors.
More than 10,000 claim estimates are analysed on XactAnalysis each day. Xactware has processed more than 27 million claim estimates for a total value of nearly €125 billion.
“We’re happy to provide access to our estimate data to University of Limerick students to help them develop these critical career skills,” said KC Agrelius, Xactware’s assistant vice president, who is responsible for XactAnalysis. “The real-time claims data contained in XactAnalysis helps insurers know what is currently happening in the insurance industry so they are better able to make critical decisions regarding their risk management activities.”
About the University of Limerick
Established in 1972, the University of Limerick is an independent, internationally focused university with more than 11,000 students and 1,300 staff. Its mission is to promote and advance learning and knowledge through teaching, research, and scholarship in an environment that encourages innovation and upholds the principles of free enquiry and expression. Visit www.ul.ie for more information.
Xactware Solutions (Xactware) is a Verisk Analytics company specialising in the property insurance, refurbishment, and restoration industries. Xactware’s applications include buildings and contents estimating programs for PCs and tablet PCs, as well as powerful online systems for reinstatement-cost calculations, estimate tracking, and data trending in real time.
For more information about Xactware’s products and services, call Xactware at 00 44 20 7680 4970 or visit www.xactware.com/en-gb/.