ImageCat announced a new partnership with CoreLogic that willallow reinsurers to reduce the systemic risk of underinsurance.Through the partnership, CoreLogic's data and property insight intoUS property replacement cost values are available throughImageCat's inhance exposure management platform.

Incorrect property valuation is just one of many data problemsthat create significant uncertainty in reinsurers' understanding ofproperty catastrophe portfolios. Other material risk factorsinclude precise building location and use, as well as constructiontype. Incorrect valuation can lead to high losses and largeuncertainties in catastrophe model output, which the insurers usefor capital allocation.

"Alterative property valuation estimates are perhaps the easiestway for reinsurers to identify systematic underinsurance, which isa major problem in the industry," Charles Huyck, executive vicepresident of ImageCat says.

Huyck estimates that only 10% of insured properties arecorrectly valued for their current rebuilding costs, and as many as30% or 40% may be underinsured.

Over the last three years, ImageCat worked with more than 20London market insurers with large exposures in the U.S. markets todevelop inhance. The program, launched in May 2014, combinesImageCat's advanced innovation and analytical capabilities, withthe in-depth building valuation models developed by CoreLogic toprovide users with a versatile and innovative online platform forcombatting exposure data issues.

"Utilizing the extensive property data resources and unrivaledbuilding valuation models of CoreLogic, inhance serves as apowerful analytics and data platform that allows users to quicklyidentify high risk properties or portfolios that are significantlyunder- or over-insured," said Huyck.