Guy Attar, co-founder of GeoX, delves into how data will become a competitive advantage for forward-thinking insurers
The Property and Casualty market has been growing at an unstoppable rate and it will continue to transform over the next 20 years, with premiums forecast to rise to USD 4.3 trillion by 2040. As we look ahead, insurers must navigate the complexities of risk with a data-driven mentality.
Today, we find that most insurers’ decisions are reliant on questionable or incomplete data. Although P&C insurance companies can now benefit from risk models that analyze huge and diverse data sets, some still rely on manual intervention and this increases personnel costs. Insurance is still processed in ways that have been disrupted for decades, and the traditional physical surveys and audits only result in high expenses and turnaround time.
New data source influencers are emerging in the insurance industry with the hope of providing the most comprehensive and accurate assessment of a property. In the current threat landscape, forward-thinking insurers need to embrace change — and fast.
What is PDaaS?
Insurance has always used data to predict future outcomes, and in the coming years, internal and external sources of data will become a competitive advantage. Property data as a service (or PDaaS) is the forward-thinking approach in the P&C market. Providing PDaaS to carriers means removing the burden of gathering property images and extracting all the risk attributes from those images, saving time and cutting costs. Not only that, but PDaaS is key when completing an accurate risk assessment for a property, as it can also provide an idea of a property’s current condition and value.
Property insurance inspection relies on accurate estimations of a property’s replacement cost, and PDaaS is crucial to uncovering existing or potential risks that could translate into future claims. The accuracy of attributes, determined using multiple images and a 3D view of the property, is just one of the ways PDaaS can drive an underwriting transformation.
According to research, close to half of all insurance firms believe they are implementing data-driven product development and using it for risk insights, but less than one-fifth are actually ‘data-masters.’ With the surge of insurtechs, progressive-thinking property insurers across the globe are competing to take advantage of upgraded camera technology and imagery captured by drones, aircrafts and satellites.
Digital transformation is underway in the insurance sector, meaning that traditional insurers must embrace innovation by looking to technology. Advancements, like research into artificial intelligence algorithms, are creating opportunities for property insurers to leverage image analytics in property underwriting and claim handling. Today, insurers must ensure they stay ahead of the curve and become ‘data-masters’.
PDaaS as the way forward
Thanks to PDaaS emerging as a real differentiator that can provide extensive, multi-sourced and AI-driven generation of property data sets, underwriters can now undertake thorough, reliable risk assessments. The value of new and accurate attributes, in the light of competitive cost structures, can help providers to shine in the marketplace.
The growing list of customers utilizing PDaaS appreciate the fact that it can maintain periodicity of updates, such as entire dataset updates every six months or a year. As PDaaS platforms are continuously evolving, operators are also adding unique attributes that otherwise cannot be made available by other property data providers. PDaaS has the ability to transform carriers’ underwriting process and claim-handling abilities.
AI has changed the way services are delivered to customers, and insurers around the world have big ambitions for AI-driven solutions to prevent, rather than predict, risk. We are witnessing a new tech-driven era in insurance and the pace of change will accelerate as insurers become more adept at using PDaaS to enhance decision making and productivity, lower costs, and optimize the customer experience.