Novarica’s recent update to its Research Council Study Insurer IT Budgets and Projects: Revisiting 2020 Plans During Pandemic revealed some changes in P/C insurance investments related to inspections during the loss control process. With COVID-19 staring insurers directly in the eyes, minimizing visits by claims staff or contracted third parties to inspect property damage or assess and identify loss control is a key goal for many insurers.
But the same can be said for inspectors who visit properties to inspect risks during the underwriting process. Visits in support of both underwriting and claims to capture photos and videos and inspect boilers, autos, homes, workplaces, camps, swimming pools, etc. have traditionally been documented through loss control solutions that guide the user through the risk-appropriate steps.
However, inspectors’ experience and knowledge generate additional questions or photos and videos to be taken. For example, a simple photo of a boiler may not reveal the level of rust on the bottom edge of the boiler. Upon physical inspection, the inspector may choose to look behind the boiler where damage or leakage may be evident for increased hazard risk.
So what are insurers doing to help mitigate the risk for visiting inspectors due to COVID-19 and other potential on-site hazards during required underwriting and claims inspections?
More insurers are turning to products that allow the insured—not an inspector—to self-inspect their properties, risk, and damages. Some vendors are leveraging AI, ML, and computer vision technology that can process real-time intake of photos and videos, identify new questions to answer, and request the insureds to take actions during the process of self-inspection. Insurers are minimizing on-site visits by staff and third-party contractors by turning to products from companies like Flyreel, 360Globalnet, Verisk, and WeGoLook.
WeGoLook, for instance, created a workforce of inspectors who insurers can hire to conduct their on-site inspections. However, WeGoLook recently introduced the YouGoLook self-inspection mobile application to address the demand by insurers aiming to reduce the need for their own on-site inspectors. Trillium Mutual Insurance is offering this self-service tool to its policyholders, enabling them to submit damage photos and capture additional information.
State Auto has deployed a white-labeled version of Flyreel’s AI-based Property Assistant to guide homeowners insurance policyholders through property inspections. Furthermore, Allstate says 60% of claims are filed via a mobile app that enables policyholders to photograph damage. Even though most initial submissions require a supplemental report once repairs have begun, Allstate refers those supplemental reports to the next available claims adjuster.
While adoption of self-inspection technologies is on the rise, some segments of the insurance market will still require a level of on-the-ground inspection to accommodate complex risks with potential high severity of losses. Oil rigs, power plants, and chemical plants are a few examples that will require teams of loss control personnel to manage risk mitigation with year-round, on-site inspections.
For many less complex risks like homes, autos, and small business brick-and-mortars, the who-goes-to-look trend is moving from inspectors to insureds thanks to some helpful solutions on the market.
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