Eircode and underwriting leakage

This predictive process is supported by a huge amount of data and analysis which feeds into underwriting, which is the act of putting an accurate price on all of these unknowables. The gap between the current state of an insurers underwriting process and a perfect underwriting process, where all information is known at all times, is known as underwriting leakage.The goal for underwriters is to reduce underwriting leakage to zero, by eliminating all of the unknowns. In reality, this is impossible, so the next best goal is to close the gap as much as possible between the current process and zero, or at least have the gap narrower than your competitors.There is a clear correlation between underwriting leakage and bad or inaccurate data. Every piece of information that is imprecise or incomplete adds to the gap. For years, Irish insurers have been trying to reduce underwriting leakage by improving their customer address data.Addressing in Ireland is a problem for insurers. Some 35% addresses are non-unique. That is to say that a cluster of houses all share a common address, only differentiated by the name of the resident. An inability to precisely identify the location of a customer introduces inaccuracy into any model and causes underwriting leakage.