How to use Policy Insights and Damage Factors (8mins):
How to Interpret/ calibrate against the different layers:
Layer
| Role of Layer
| How to interpret / calibrate |
Exposure Layer (Approximate Damage, wide area)
| Approximate early damage signals.
| Use conservative damage factors and broader bands.
|
Claims Layer (Observed imagery averaged over 200m or 1km grid)
| Serves as a reliable average of damage severity, offering a trusted signal of relative impact rather than a definitive property-level classification.
| Use full range, but factor in that it’s an average across many structures - the grid assessment might be more severe than the majority of the properties in that grid square.
|
Building Level (Confirmed property-level)
Not yet available for Damage Factors in GEO
| High confidence property level classification.
| Use the higher end of each band, or adjust upward slightly because you have direct confirmation. Individual buildings may map to individual factor rather than an average / range.
|
Considerations:
Uncertainty and error bounds: Because the Exposure Layer is based on indirect signals (winds, radar, etc.), you could consider an “uncertainty buffer” (e.g. ±10 %) around whichever factor is chosen for the Claims Layer.
Non-linearity: The relationship between damage and loss value is not strictly linear. In many scenarios, as damage increases, the incremental cost grows faster (due to structural collapse, value of remaining salvage, etc.). Loss increases exponentially with flood depth and roughly quadratically with hail size. So you might want to apply a non-linear transformation in your factor choices
Calibration via historical claims: Over time, these damage factor mappings should be calibrated against actual claims outcomes. By comparing historical claims data with the corresponding damage assessments, you can refine the factors (e.g., a “Moderate Damage” Claims Assessment may align with an average loss of around 35%). If you’d like support with this work, please reach out.
V1.1
Default Damage Factor Assumptions and Caveats:
These damage factors are derived from broad industry knowledge rather than direct claims analysis or engineering judgment. They have not been validated against actual claims data and are intended as an initial guidance. We recommend working with your Success Analyst to calibrate these factors against your own claims history.
We recognise that the same damage classification may correspond to different loss outcomes across building types (e.g., wood frame versus masonry), and this level of differentiation is not currently supported. Certain lines of business-such as fine art or other specialist assets may require additional calibration to accurately reflect their unique vulnerability profiles.
Note: Over time we may look to update the default factors.
MIS Baseline Damage Factors
Assessment
| Functional Interpretation
| Claims Factor
(min-max%)
| Reason /Rational
|
No Damage
| 0% loss
| 0-0%
| Zero impact
|
Low Risk of Damage
| Negligible risk
| 1-1%
| Very minimal impact.
|
Risk of Internal Damage
| Hidden damage
| 1 - 30%
| Could have non visible interior damage. Smoke damage will produce significantly lower losses. Risk of Internal damage in a hurricane could be indicative of flooding.
|
Light Damage
| Superficial (tiles, fences)
| 5 - 10%
| Cosmetic, limited structural effect.
|
Moderate Damage
| Minor structural, roof breached
| 20-30%
| Partial repairs needed and some structural compromise
|
Substantial Damage
| Major structural (roof off, walls affected)
| 40-60%
| Significant structural repair, large proportion of building affected
|
Severe Damage
| Building beyond reasonable repair
| 70 - 80%
| Almost total destruction with some salvageable parts
|
Destroyed
| Total loss
| 80 -100%
| Full loss, no salvageable value
|
Damage Cannot be Ascertained
| Observation not possible for this area
| 1 - 1%
| Unknown impact, cannot assume no damage
|
Flood Severity Factors
Assessment | Functional Interpretation | Factor (min-max%)
*Exposure only. | Reason / Rational
|
Potentially Flooded
| Flooding detected but depth uncertain
| 0 - 10% *
| Early indicator only - potential minor water ingress; high uncertainty. Potentially flooded sentence.
|
Light
| Depth 0–0.5 m
| 10 - 30%
| Shallow flooding can damage ground floors, fixtures, and electrical systems.
|
Moderate
| Depth 0.5–1 m
| 40 - 60%
| Substantial interior damage; structural and content losses rise steeply beyond 0.5 m.
|
Severe
| Depth > 1 m
| 70 - 100%
| Deep inundation often causes near-total structural and content loss.
|
Hail Intensity Factors
Assessment | Metric
| Factor (min-max%)
(Exposure and Claims) | Reason / Rational
|
Minimal Intensity
| 15–30 mm
| 0 - 1%
| Typically negligible property damage. May cause isolated cosmetic wear to soft roofing materials.
|
Low Intensity
| 30–40 mm
| 1 - 3%
| Minor roof surface bruising or cracked shingles. Limited risk to external cladding or gutters.
|
Moderate Intensity
| 40–55 mm
| 1 - 5%
| Noticeable roof degradation, potential for water ingress through compromised surfaces. Minor glazing damage possible.
|
High Intensity
| 55–70 mm
| 1 - 15%
| Widespread roof and exterior damage, including punctured tiles or metal panels, with increased risk of leaks and insulation damage.
|
Severe Intensity
| >70 mm
| 5 - 30%
| Widespread roof and exterior damage, likely requiring full roof replacement and glazing repair. Limited interior water ingress possible but structural integrity generally intact.
|