Using A.I. to Accelerate the Residential Insurance Underwriting Process
The process of underwriting a residential property hasn’t changed much over the past few decades. Insurers today are more likely to leverage a network of third-party assessors and contractors. And there are a handful of new apps that can provide basic measurements. But insurers still need to send someone onsite to visually assess, measure and document everything needed for each residence – which is costly and causes delays in the underwriting process.
But new computer vision and machine learning capabilities are accelerating changes in the residential insurance industry. Let’s take a look at how artificial intelligence can accelerate the residential insurance underwriting process.
The current underwriting process is often delayed by 1 – 3 weeks for an onsite appraisal to be conducted. Here’s a look at the end-to-end process:
- A client gets preapproved financially
- A client’s income and assets are verified
- An appraisal is conducted on the client’s home
- A title search is conducted
- The underwriting decision is made
Step 3 is crucial for insurers: these online assessments inform decisions on billions of dollars in new insurance policies and damage claims every year. However, step 3 is time consuming, costly, and prone to human error.
This is where new artificial intelligence solutions like Hosta A.I. come in.
Our A.I. technology can help accelerate the appraisal process–without having to send someone on site. Instead, the client takes pictures of their space, upload those photos via a simple link, our A.I. processes the images, and you receive the accurate measurements, data, and context you need to quickly and accurately price a new insurance policy or approve a claim.
Near-instant property assessments shorten the time it takes to price and underwrite new residential insurance policies. Insurers that embrace this new technology will have a significant competitive advantage over firms that continue to take 3+ weeks for a process that can now be done in a matter of days.