AI-powered geospatial property analysis firm CAPE Analytics is partnering with Hanover Insurance Group to maximize the use of more accurate property information for underwriting, their executives say.
“In an industry-wide manner, carriers use CAPE data to evaluate the health of rooftops, solar panels, overhanging trees and swimming pools,” said Busy Cummings, director of revenue at CAPE Analytics. “All of this can be derived faster and with greater accuracy from aerial or imagery CAPE models than from traditional third-party data sources.”
By identifying the key characteristics of a property faster and more accurately than third parties, CAPE will provide Hannover with intelligent information it can use.
“We continue to push the boundaries of what’s possible by integrating CAPE capabilities such as quality inspections of residential roofs and other potential homeowner concerns such as litter in the yard, pools and trampolines,” said Tim Dillahunt, VP of Underwriting and Strategy at Hannover. , in a press release. “Hanover’s commitment to investing in technology gives independent agents a better understanding of risk and more accurate pricing.”
CAPE is working with Hanover to improve workflows, increase price segmentation and advance its technology to improve underwriting efficiency.
“Traditionally, the industry has used the age of roofs as a data point to understand the remaining useful life, or how high the risk and likelihood of weather claims,” Cummings said. “You and I may have 10 year old roofs, but depending on where we are, the roofing material, the slope, and the direction they are facing, they age at different rates and therefore have different residual life. “.
“We’re having an impact across the board, helping carriers, in terms of loss ratio, eliminate these bad risks or price them,” Cummings said. “If it’s still in line with the appetite, but it results in a higher rate, we lower the expense ratio by optimizing inspection by making sure you don’t send an inspection team when CAPE says everything is great.”
Other key risks to consider when evaluating residential real estate include living space and the quality of interiors, Cummings said. “These are the two data items that are the most incorrect in the industry from various sources and have the greatest impact, when incorrect, on replacement cost and therefore coverage,” he said.
