Geospatial Data Provides Useful Solutions for the Realty Insurance Industry
Geospatial Data is today providing valuable solutions for the realty insurance industry. Geo -Technological interventions and collaborations are being seen to add value to one industry after another. One of the latest industry to be embraced is the property insurance realm wherein geospatial data has slowly entered key discussions and decisions.
The question of ‘where’ is most relevant for any home discussion parameters. In fact the importance of ‘location’ follows almost all property decision threads and inevitably integrates with the matters related to its protection and maintenance. The entire realm of insurance sector safeguarding the realty space follows this matter of ‘where’ to ascertain critical decisions like – locational vulnerability to natural elements, accessibility factors for utility linkages and also degree of safety and security of the surrounding areas.
“Now, more than ever, insurance carriers are looking for advanced technology solutions to better select, understand, and evaluate risks to properties instantly and at scale” shared Kavyan Farzaneh, Head of Marketing at California based company ‘Cape Analytics’ in an exclusive interview with Geospatial World. In an exclusive conversation with Geospatial World he shared examples of how geospatial data is providing useful solutions to the realty insurance sector through the experiences of his company’s business solutions.
Today innovative insurance leaders are identifying great opportunities in using geospatial technologies. What are the key trends in the integration of geospatial technology and insurance industry needs?
Now, more than ever, insurance carriers are looking for advanced technology solutions to better select, understand, and evaluate risks to properties instantly and at scale. All of this needs to happen with an eye towards carriers’ workflows: from faster quoting to streamlined underwriting, from optimizing inspection programs to sharpening renewal decisions, and from wildfire risk assessment to hail storm claims triage — the possibilities for leveraging geospatial intelligence are vast.
Regardless of the application, the best solutions can integrate seamlessly into each insurer’s unique systems and workflows to help realize the most value from the insights that geospatial technologies provide. Data and technology given to insurers without ongoing guidance does little to help an organization reach their goals.
Today many insurance companies are recognizing the value of geospatial software and data for improving different aspects of their business. How can they apply it best in their organization and use it to their benefit?
The use of geospatial insights requires both the data provider and insurer are aligned on the carrier’s goals. Receiving the most accurate information means nothing if it isn’t put to the correct use. It’s also important for carriers to start with a focused use case.
One insurer may leverage a property characteristic like roof condition to help select risks at the underwriting stage, while another may use it to verify the need for a physical inspection of a property. Others may want to start with a review of their current portfolio to see if any major changes have occurred since they underwrote the policy, such as adding a building extension or a backyard pool.
What are the key challenges in applying location intelligence successfully to address insurance industry challenges?
A key challenge we’ve identified in applying location intelligence is in the commercial insurance underwriting process. Suffering from inconsistent policy submissions and complex properties with multiple structures, many commercial carriers are left to rely on overly complicated, time-consuming, and costly patchwork systems that leave the underwriter without clarity as to the exact structures that are a part of the policy. Without getting the basics right—which structures an underwriter should include in a policy—additional information cannot be leveraged.
Our team has focused on many of these first-order problems to create solutions like CAPE Property Mapper, which can correctly locate and map multi-structure properties, emulating the actions that a human underwriter would take. From there, the insurance carrier can more easily automate a larger proportion of their business.
Climate change and related natural events have led to colossal losses which need to be reviewed by the insurance sector. Such climate induced losses are getting magnified in recent times. In this context how is AI powered property intelligence for insured risk being received by the overall insurance industry?
Wildfire, wind, and hail-specific insights have been well-received across the industry in the face of ongoing climate and weather challenges. AI-powered geospatial analysis can allow carriers, for the first time, to understand risk on a property-by-property basis and how exact construction types or characteristics like vegetation can alter a property’s risk profile. We saw this early on, with insurance carriers in Florida and other hurricane areas, quickly adopting roof characteristics like condition and shape to better assess home vulnerability to high winds.
More recently, we’ve seen tremendous interest in AI-powered wildfire risk scores. CAPE offers one of the only solutions that provides vegetation density for homes in wildfire-prone areas, allowing insurance carriers to better judge structure vulnerability and suggest actionable steps on how homeowners can reduce their risk.
Lastly, we’re seeing renewed interest in hail solutions. Hail losses continue to rise and carriers have has few solutions to deal with this challenging weather peril. CAPE recently partnered with Canopy Weather to create a first-of-its-kind metric that can accurately predict which homes have sustained hail damage, within hours of a hailstorm, allowing insurance carriers to automate the payment of those claims.
CAPE Analytics has pioneered the creation of ‘new, predictive, property insights.’ – Please can you share more on these innovative offerings?
CAPE Analytics was the first to apply AI to geospatial imagery and to provide property risk insights specifically for insurance carriers. In 2016, CAPE created the gold-standard Roof Condition Rating, which is now being used for pricing insurance policies in over 35 states. The company now serves information on over 100 million properties across the United States and Canada, across both residential and commercial offerings.
In addition to over 70 imagery-derived property characteristics and weather risk scores for wildfire, hail, and wind, CAPE recently introduced a next-generation data prefill product called Purefill. Purefill is powered by a machine learning platform which can ingest multiple data sources (both imagery and non-imagery data) to provide more accurate insights into critical property attributes such as a home’s living area, its quality grade, and the number of stories. These insights help carriers create more accurate replacement cost estimates and reduce the likelihood of underinsurance.
Real life testimonies speak the loudest for any business endeavor. Please can you share any significant client story with us?
We have countless examples across the 70+ enterprise clients we serve today, including some of the largest insurance carriers in the world. One client, Florida Peninsula, reduced their inspection expenses by 20% when they started using CAPE and can monitor their entire portfolio on a monthly basis. Another client, CSAA, saw a threefold increase in the productivity of their inspectors, by focusing them on the right properties.
Another client, Hippo, integrated CAPE’s AI-powered property insights to further streamline their underwriting capabilities and tailor policies based on the most recent and accurate property information. Lastly, State Auto (now owned by Liberty Mutual) dramatically increased the number of policies they could automatically underwrite by leveraging CAPE insights.
Also Read: Using Geospatial Imagery, AI and Risk Relevant Data For Insurance Industry





