Insurance companies divide a terrain into pieces to rate as risk prone or risk free with the history of disasters occurred in the place. Risk assessment helps finding a better premium for a user.
Geographical information plays an important role in the insurance industry. The industry has been relying on new and advanced technologies such as insurance GIS to act as a catalyst for providing better services. The impact of various natural or manmade calamities that cause destruction can be studied and mapped using geographic information technology and assist in insurance GIS.
The potential benefits of integrating GIS in Insurance Industry: