Before underwriting a new policy or renewing existing policies, carriers want to understand the risk associated with the property. Has the property been properly maintained or are there significant issues such as missing shingles on the roof or a crumbling foundation? Is there an addition to the property or new in-ground pool that may impact the amount of coverage? Executive SummaryRather than wait for an end-all, be-all imagery, mobile and analytics solution, carriers can move immediately on a more sophisticated inspection optimization solution that leverages what’s available today, writes Mikhail Palatnik of CoreLogic, who demonstrates the savings potential of doing virtual inspections on properties for which high-quality imagery exist right now.
In most cases, carriers dispatch inspectors to verify the property characteristics and assess the condition of the home. If there are issues or discrepancies, carriers have the option to 1) rescind or cancel the policy, 2) notify the homeowner of required remediation, or 3) change the coverage amount to accurately reflect the true replacement cost.
Property/casualty insurers carriers allocate and spend a significant portion of their annual budget on inspections, with the industry aggregate cost already exceeding six figures in 2013. Often, there are no issues or coverage discrepancies on a property which causes money to be spent on an unnecessary inspection. So how should a carrier decide which properties to inspect as well as the best method for inspection? To optimize inspection dollars, programs should be constantly evolving to take advantage of the latest advancements in technology and advanced analytics.