How are insurance carriers using data to mitigate risk?
Insurance carriers are using technology to gather data to help them to more accurately underwrite risk. While the use of drones is still being tested, other sources of data for insurance carriers include smart devices and telematics.
Does data eliminate the need for and inspection altogether?
Some insurance carriers are choosing to eliminate the need for a property inspection in lieu of the data available to underwrite risk. Technology such as satellite and aerial data capture can provide insurers with images of lower risk properties without creating the need for a physical property inspection. The idea of eliminating in-person property inspections on lower risk properties is that it will offer insurance carriers benefits in up-front cost savings and efficiency.
While advancements in data will certainly help insurers to more accurately underwrite risk and provide a faster turn-around time for customers, it’s important to remember that an in-person inspection will add tremendous value. Even though some insurance carriers are quick to use data to replace the need for property inspections, the most prudent carriers will use a blend of the two to minimize the risk of loss.
At Insurance Risk Services, we’ve been providing accurate underwriting support to carriers in the property and casualty insurance industry for more than 35 years. While a carrier may engage us to complete an in-person inspection, we also rely on data to put together high-quality underwriting reports to allow our clients to make informed decisions.
Images of a property are certainly helpful; however, with the amount of data available today through the use of technology, it’s in the best interest of the insurance carrier to utilize a blend of data, photos, and human review to maximize the accuracy of the underwriting process.
Are you interested in learning more about how we use data and personal insight at Insurance Risk Services to provide insurance carriers with accurate underwriting support? Please contact us to learn more about why data needs to be a part of your underwriting process.