Just to demonstrate the impact that these storms have made, more than 80,000 flood insurance claims were filed due to Harvey alone. The property insurance claims in Florida related to Irma are estimated to be nearly $3.6 billion. It’s estimated that the apocalyptic devastation that happened in Puerto Rico due to Maria will result in more than $900 million in claims.
In an environment of declining profitability, it’s concerning as to how insurance carriers will be able to absorb these losses. If there’s a lesson to be learned from these storms, it’s that insurance carriers must maintain underwriting discipline despite competitive pressures if they plan to be around in the future.
The Danger of Underwriters Not Using Property Inspections
In an effort to reduce costs on the frontend and compete with the influx of insuretech companies, some insurance carriers are choosing to rely on data and forego their need to make a property inspection part of the underwriting process. However, considering that there are a number of risks that a property inspection reveals that would not be identified otherwise, is this really saving insurance carriers money? In reality, when underwriters don’t use property inspection reports, they put carriers at a considerably higher risk for loss–a loss that could be prevented if a property inspection had been completed.
We’ve been providing accurate underwriting support to insurance carriers for more than 35 years in the form of residential and commercial property inspections. Our seasoned professionals with a wide range of industry licenses, designations, and degrees are able to provide you with custom survey reports that are tailored to your specific needs. We’ve seen how the property and casualty insurance industry has evolved over the years, and now is not the time to embrace relaxed underwriting practices.
Our team at Insurance Risk Services prides ourselves in delivering the most accurate reports to help our insurance carrier partners make informed decisions. In today’s competitive environment, you need to know which risks are worth taking. Contact us at Insurance Risk Services to learn more about the value of a property inspection and how our use of an advanced inspection management system will arm you with accurate reporting in a timely manner.
