The article assumes that most common risk factors are exterior in nature, bird’s eye. The largest drivers of claims come from fire and water damage related to interior systems which must be periodically inspected for maintenance, types, manufacturers, condition, product recalls, and timely upgrades. A large percentage of homes cannot be viewed by satellite due to tree canopies and location, in these cases satellite inspection is useless. Additionally, there is an industry wide need to update replacement costs to reduce premium bleed.
For areas affected by windstorm, approximately 40% of US housing units, construction features, maintenance, and roof condition provide additional granular data for advanced models which identify increased potential for claims and have a direct effect on reinsurance costs. These features cannot be verified by inexpensive exterior only inspection, a closer inspection programs.
However, satellite programs can be a useful tool when used to support or enhance an on-site inspection program. While the article correctly identifies costs associated with visual inspection, it fails to consider the increased claim potential related to assumptions based solely on outdated or erroneous public information or inexpensive exterior only inspection programs. Many markets are adapting to risk-based premium to reduce unnecessary claims and ensure premium is adequately adjusted for site specific risk factors.
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The article assumes that most common risk factors are exterior in nature, bird’s eye. The largest drivers of claims come from fire and water damage related to interior systems which must be periodically inspected for maintenance, types, manufacturers, condition, product recalls, and timely upgrades. A large percentage of homes cannot be viewed by satellite due to tree canopies and location, in these cases satellite inspection is useless. Additionally, there is an industry wide need to update replacement costs to reduce premium bleed.
For areas affected by windstorm, approximately 40% of US housing units, construction features, maintenance, and roof condition provide additional granular data for advanced models which identify increased potential for claims and have a direct effect on reinsurance costs. These features cannot be verified by inexpensive exterior only inspection, a closer inspection programs.
However, satellite programs can be a useful tool when used to support or enhance an on-site inspection program. While the article correctly identifies costs associated with visual inspection, it fails to consider the increased claim potential related to assumptions based solely on outdated or erroneous public information or inexpensive exterior only inspection programs. Many markets are adapting to risk-based premium to reduce unnecessary claims and ensure premium is adequately adjusted for site specific risk factors.