Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Calculation method Decline in value
- Publication category
- Impactful algorithms
- Impact assessment
- DPIA
- Status
- In use
General information
Theme
- Nature and Environment
- Living
- Public finance
Begin date
Contact information
Link to publication website
Responsible use
Goal and impact
Purpose: To calculate the amount of compensation the IMG should pay out for a property for which a depreciation allowance has been applied for.
Impact: The property's WOZ value and sale price are important for the depreciation compensation. In addition, the location of a property and the quakes that have occurred in this area over the years are considered. Based on all this data, the algorithm calculates the decrease in value of a property.
Considerations
Advantages: the calculation method ensures that every applicant gets compensation to which they are entitled. This is because not every property has decreased in value by the same amount. This way, the decrease in value of each property is always calculated according to a fixed calculation method.
Disadvantages: this will be updated later.
Human intervention
The calculation method is not checked by a human, the amount from the calculation method is adopted. Such checking is not necessary. The calculation method in the algorithm is fixed. The same data is looked at for each property: WOZ value, location and the quakes that have occurred on the property. The input of these data always leads to the same outcome.
Risk management
We evaluate the risks in accordance with our privacy policy. Based on this evaluation of, we take or adjust additional measures. The next update for the risks of this algorithm is scheduled for in Q4 2024.
Legal basis
Article 2 paragraph 3 sub a under 3 Temporary Groningen Act: IMG's task and authority is to deal with damage and, to this end, to determine the amount of compensation for damage or, if the applicant so wishes and the damage lends itself to it, the measures to be taken in kind.
Links to legal bases
Link to Processing Index
Elaboration on impact assessments
A DPIA has been carried out on the Valuation Drop Scheme.
No Fundamental Rights Impact Assessment has been carried out on the Valuation Drop Calculation Method because the Calculation Method is not a high-risk AI system. This is because the algorithm does not meet the definition of an AI system because the algorithm does not act independently.
Impact assessment
Operations
Data
Necessary data for an application:
- Postcode
Data used in developing the calculation method:
- Earthquake history (location and severity)
- Postcodes value area
- Environmental characteristics of all Dutch postcodes
- Earthquake damage data per dwelling and postcode area
- WOZ-values objects value decline area
Technical design
All postcodes within the valuation area have been classified into severity categories. The severity category is determined by the quake history within a postcode area. For the calculation of the decrease in value, the WOZ value of the property serves as a starting point. Once the severity category of the property has been determined, compensation is calculated on the basis of a severity category matrix and a compensation matrix.
External provider
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