Premium rate hikes necessitate accurate, timely data to identify high-quality risks

Premium rate hikes necessitate accurate, timely data to identify high-quality risks

As a result of the hyperactive and catastrophic hurricane and wildfire seasons, the U.S. property and casualty market has seen notable rate hikes in 2018. Premium rates increased 2.5 percent in the second quarter alone, according to MarketScout. However, there is hesitation around whether consistent price hikes are a sustainable strategy in the long term, and it will be increasingly necessary for carriers to identify new business opportunities with quality risk profiles. As such, it’s critical that carriers leverage the most accurate and timely data available to effectively price premiums and determine eligibility.

The challenge lies in calculating the type, degree and associated cost of property changes while keeping pace with the nationwide remodeling boom. In the last decade, new BuildFax research found that residential remodeling activity increased 58.9 percent while commercial remodeling has increased 16.3 percent in the same time frame.

With BuildFax’s Change Detection insight – yielded from over 23 billion individual data points on property history and condition covering more than 70 percent of the U.S. population – carriers are alerted to significant property changes within key time frames. Carriers can hone in on specific structure changes, such as roof installations or new pools, as well as impactful points in time, which may include alterations to a property after the policy inception date, issuance of a claim, and more.

Download BuildFax’s new report for greater insights into the impact of remodeling on carriers, including:

  • A granular view of commercial and residential remodeling growth
  • Why traditional methods of identifying change detection are insufficient at scale
  • How change detection data empowers carriers to mitigate risk while creating new pathways to profitability

For more information on how BuildFax’s Change Detection insight can help mitigate P/C insurance risk, contact us today.