Why do we need a specialist geocoding provider?

Ensuring precise address accuracy is important, and not all geocoding solutions deliver the same level of reliability. Many global providers claim to offer "rooftop accuracy," but in practice, this often means the location is close, but not quite right. For certain industries, particularly insurance, even small discrepancies can have major consequences.

That’s where Addresscloud comes in, we focus on precision and reliability in geocoding. To showcase the differences between global solutions and a specialist provider, we conducted a sample comparison across diverse address types, revealing key gaps in mainstream geocoding services.

Why Accurate Geocoding Matters for Insurers

Accurate geocodes are essential in risk assessment, underwriting, pricing, and claims management. Here’s why:

1. Risk assessment & underwriting

Peril Exposure: Precise location data allows insurers to assess risks such as flooding, subsidence, wildfire, and crime at a property level rather than relying on broad postcode areas.

Aggregation Control: Helps insurers monitor risk concentration in catastrophe-prone areas (e.g., ensuring they don’t overexpose themselves to coastal flooding or earthquake zones).

Property-Level Insights: Identifies high-risk locations (e.g., a property might be in a high flood zone even if its postcode suggests otherwise).

2. Accurate pricing & rating

Better Risk Differentiation: Two properties in the same postcode could have vastly different risk profiles (e.g., one on a floodplain, one on a hill).

Fairer Premiums: Reduces cross-subsidisation, ensuring low-risk customers aren’t overcharged while high-risk ones pay appropriate premiums.

3. Claims management & fraud detection

Faster Claims Processing: Knowing the exact property location streamlines damage assessment and response after a catastrophe.

Fraud Prevention: Helps detect inconsistencies (e.g., a claimed loss occurring at a different location than insured).

Disaster Response Planning: Insurers can proactively prepare for major events, such as storms, based on geospatial insights.

4. Regulatory & compliance requirements

Regulatory Reporting: Insurers must accurately report exposure and solvency positions to regulators.

Fair Treatment of Customers: Ensures policyholders receive appropriate cover based on their actual risk.

5. Competitive advantage

More Accurate Risk Models: Enhances predictive analytics and machine learning models for better risk selection.

Enables Parametric Insurance: Location-based triggers (e.g., earthquake intensity, rainfall levels) rely on precise geocoding.

Example Impact

Incorrect geocode: A property marked in a low-risk flood zone (but actually near a river) leads to an underpriced policy and unexpected claims costs.

Accurate geocode: Identifies real exposure, allowing correct pricing, risk mitigation, and improved profitability.

Address types that challenge global geocoders

We tested a dataset of 50 addresses from each of the following categories:

• Large Commercial Properties – Often mislocated as POI data is skewed towards SMEs and retail outlets.
• Residential Flats/Apartments – Typically, only the block is found, not the specific unit, making it difficult for use cases requiring detailed property-level data such as floor level (critical for flood risk).
• Named Residential Properties (No Number) – Many international solutions struggle with named houses as they don’t integrate official UK address datasets such as Royal Mail’s PAF.
• Standard Residential Properties – While most services match these, coordinates may not always be at rooftop level and instead be placed on the road, or interpolated between known addresses.
• Partial Addresses (Line 1 + Line 2 + Postcode Sector) – These often confuse global geocoders,

Addresscloud’s geocoding solutions break through these limitations by utilising official, high-accuracy datasets like Ordnance Survey’s AddressBase. Here’s what sets us apart:

● UPRN Matching – The Unique Property Reference Number (UPRN) is essential for linking addresses to third-party datasets, including government and commercial data.

● Official Address Data – Essential for policy documentation, compliance, and ensuring accuracy in regulated industries.

● Rooftop-Level Precision – Unlike some global solutions, our geocoding is based on authoritative UK sources, not estimations or interpolations.

The bottom line

Not all geocoding solutions are created equal—the right choice depends on your specific use case. Rooftop accuracy isn’t always guaranteed, and when working with detailed property data, precision is everything. Flats, commercial properties, and named houses often require specialist data to account for unique address structures. Meanwhile, UPRNs and official address datasets unlock deeper insights, making them essential for insurance, compliance, and seamless data linking.

For businesses that depend on precise location data, choosing a specialist provider can make all the difference. 

Want to see how Addresscloud can support your needs? Would you like a case study or specific examples of how insurers use geospatial risk data? Reach out to our team, or explore our latest blog posts for a closer look at geocoding accuracy.