Cookhouse Lab completed its first taster session at the beginning of this month, with the goal of enabling participants to experience Design Thinking at Cookhouse Lab, whilst opening collaborative discussion on a key industry topic. The session lasted two days in total (which included a final presentation and BBQ) and focused on the topic of a risk exposure data warehouse (REDW).
What is a risk exposure data warehouse (REDW)?
Simply put, a REDW is the concept of a single repository where all data relating to real property and associated buildings may be stored, enriched and managed. This would require multiple insurance organizations within Canada (as a start) to agree to share data, agree on where to store the data, and agree on how to manage the data. This is not an easy process.
However, there is clear value to be gained by establishing such a repository.
What value does a REDW offer?
There are a couple of key benefits in establishing a REDW.
Better risk management
The first is better risk management, enabled by gaining access to historical property data. The second benefit is the potential for a better customer experience. With all the data available, insurance organizations would be able to reduce the length and complexity of the customer sign-on experience. Participants on the project agreed that although property data is inherently valuable, and therefore less likely to be shared, what is done with the data is potentially far more valuable than the data itself.
Monetization of data
This leads us on to the second area of value which is monetization of the data. End users, banks and members of the real estate industry would find huge value in data detailing the risk events associated with a property. Such data could influence which house an end user may purchase, the rate at which a bank may grant a mortgage, or how realtors sell property. These users could be charged a sum to gain access to this data, either through individual insurers or directly from the manager of the warehouse.
This taster session was a way of starting industry conversation around the possibility of a REDW. If you are interested in pursuing this topic further in a collaborative setting at Cookhouse Lab, let us know!