|
MSB: Degree of Home Undervaluation Shifts in 2007
NEW BERLIN, WI FEBRUARY 14, 2008 - MSB, the leading worldwide provider of building cost data and estimating technology to the property insurance industry, and a MacDonald, Dettwiler and Associates (MDA) company, announces the 2007 Insurance-to-Value Quality Index(TM), MSB's proprietary benchmark for assessing homeowners coverage adequacy across the United States. MSB's study reveals that an estimated 66 percent of U.S. homes are undervalued for the purpose of insurance by an average of 18 percent.
Each year MSB provides an update to the marketplace of its Insurance-to-Value (ITV) Quality Index. Based on analysis of millions of homes flowing through MSB estimating systems, divided into subsets and contrasted with other market conditions, MSB concludes that replacement cost values improved by an average of 4 percent this past year, although the number of undervalued homes increased.
Pascal Lorthioir, Chief Knowledge Officer for MSB, states this is important news for the industry. "The industry has clearly worked hard to adopt modern estimating systems like the MSB "total-component" methodology for their new business submissions, but the use of these technologies for their legacy book of business has opportunity. The industry has shown improvement in both the number of undervalued homes and in the amount of undervaluation in the past 12 years; in 2007, trends in undervaluation improved again."
According to Peter M. Wells, President of MSB, "Capturing the salient inside and outside characteristics of homes insured, reviewing these regularly with policyholders and using "total-component" estimating to update coverage limits on an annualized basis is recommended by industry experts and regulatory bodies as the preferred method of managing better property business."
"Our Underwriting Analytics services certainly have been heavily solicited in the past two years to help insurance providers spot problem accounts in their books of business," continues Lorthioir. "Carriers have taken advantage of this service to find the most undervalued risks in their portfolios and at the same time improve the updating process. Now that the storms of the last few years are over, and the industry has had a chance to take a breath, action has refocused on those homeowner policies that need attention."
About MSB
Marshall & Swift / Boeckh (MSB), an MDA company, is the leading supplier of local building cost information, residential and commercial property valuation technology and services for the property and casualty insurance sector in the United States and Canada. MSB has five offices throughout the U.S. and Canada. For information, please contact Marsha Berenson, Media Coordinator, at 800-285-1288, Ext. 2828, MAILTO:Marsha.Berenson@msbinfo.com, or visit MSB's Web site at HTTP://www.msbinfo.com.
About MDA
MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.smallhead
Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.
MDA employs more than 3,000 people in locations across the United States, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.
|