Europe-based Groupama Insurances has invested in Freeze Insight, a new computer model that predicts the relative risk of freeze related claims across the UK.
Freeze Insight model developed by technology firm Business Insight is based on 100 million historic temperature records, 26 million properties and 1.7 million postcode locations.
With the help of maths modelling and computing power, the new freeze risk model will gather information on the areas that are most likely to experience claims during prolonged cold spells.
An overview of high and low-risk areas will be provided by the Freeze Insight along with the postcodes for underwriting freeze-related claims with greater accuracy.
Groupama Insurances head of household Craig Allen said that burst pipe claims during freezing spells are a major source of loss to the insurance industry. In 2010 and 2011 there was a surge in escape of water claims as the UK experienced one of its coldest winters for 100 years.
"Freeze Insight is a very impressive product and it will improve our area rating and our pricing in areas where we have little claims experience. For policyholders this means a much more accurate and therefore fairer rating for the risk their property may pose," Allen added.
Freeze claims in the UK during the winter of 2010/2011 are estimated to have cost the insurance industry £1.4bn.