Intelligent AI, the Intelligent Risk and Underwriting Platform provider, has published its report ‘The need for real-time property data in commercial property insurance’ following a survey of 82 leading insurers and broking firms. The report highlights the huge opportunity for early adopters.
Currently, only 10% of insured commercial properties are typically visited by risk engineers in the UK each year, according to the report, which means that insurers are potentially pricing risks incorrectly, losing out on profitable business, and failing to deliver real risk and underwriting insights to their clients.
The facts back up the case, as commercial property underwriting has been loss making for at least the last five years, with Lloyd’s of London reporting that on £50bn of premiums the market had lost over £4.7bn.
In the survey, 87.6% of insurer and broker respondents stated that real-time data is very important or important to their business. However, only 34.5% feel that their business is very good or good at delivering real-time data to benefit their employees, brokers, and clients.
The positive news, however, is that over 60% of insurers and brokers are already highly likely, likely or are currently considering investing in real-time data and digital twins in the next 12 months as we build back better from the pandemic.
Anthony Peake, CEO of Intelligent AI, said: “There is a huge global opportunity across the commercial property insurance sector. We need to move away from a system based on incomplete and historic data, which is failing to accurately define levels of risk in the marketplace. Having real-time, accurate data on risks and risk mitigation could ultimately help to prevent catastrophic incidents like Grenfell Tower.”
By gathering detailed location intelligence from open data, natural catastrophe data, satellite data, IoT data, and AI extraction of data from risk reports, insurers are now able to create real-time digital twins of the risks across 100% of their portfolios, not 10%, in order to price more competitively and identify risks far more accurately.
Further, AI and advanced data analytics is proving it can now help insurers, brokers, and their clients to better identify and track risks, providing actionable insights that could save the commercial property insurance sector hundreds of millions of pounds each year. Benefits for the customer include mitigated health and safety risks and greater business continuity.
The team at Intelligent AI has previously delivered risk management solutions for 6 of the top 10 UK insurers as well as holding key roles at global technology companies, including Apple, GE, BT, and Oracle. Intelligent AI aims to transform the commercial property insurance sector with innovative real-time data and AI systems.