Lemonade is an example of a new InsurTech company that is quickly gaining traction with Millennials living in urban areas. Through the company’s app, consumers can purchase homeowner’s or renters insurance within 90 seconds. Insureds can also submit claims via the app and get paid within a matter of a minutes as well. The convenience of the app, the ease of getting insured, and the speed in which claims are handled all make Lemonade an attractive solution for insureds.
Are InsurTech companies able to make informed decisions using big data?
InsurTech companies are relying heavily on big data to make underwriting decisions rather than conducting a physical insurance inspection to more accurately underwrite risk. In the case of Lemonade, the InsuraTech company is only focusing on a limited number of markets that it understands, which helps the company to better gauge risk. However, InsuraTech companies are still new to the market, and we have yet to see how their heavy reliance on technology and data will impact their exposure.
Our team at Insurance Risk Services has been providing accurate underwriting support to carriers in the property and casualty insurance industry for more than 35 years. In our opinion, technology needs to play a role in the underwriting process, but it shouldn’t just be about technology. Instead, the people, the processes, AND the technology need to work together for carriers to best understand insurers and most accurately underwrite risk.
How does an insurance inspection add value?
Technology can’t replace the value of a physical insurance inspection. For one, an in-person property inspection will help insurance carriers to best identify risks associated with a property–risks that data won’t always reveal.
Equally as important, an insurance inspection creates an opportunity for carriers to strengthen their relationships with insureds. While InsurTech companies like Lemonade rely on Artificial Intelligence to interact with customers, people still value knowing that they are talking to a person. An insurance inspection often involves face-to-face interaction between the the carrier and the insured, creating a more personal experience.
A property inspection will also help carriers to identify new opportunities to serve insureds, therefore helping to grow the bottom line.
Please contact us at Insurance Risk Services to learn more about the value of an in-person property inspection and how it can allow you to differentiate your brand from the competition.