The issue of underinsurance has been a persistent problem in the property insurance market for years. Commercial property owners are often unaware of the correct rebuild cost of their buildings, leading to undervaluation and underinsurance. This creates exposure for insurers and brokers who must pay out large sums for claims that may be underinsured. A recent study by insurance broker Towergate estimated commercial properties in the UK are underinsured by £325bn. In response to this issue, Intelligent AI has launched a new platform to tackle underinsurance in commercial properties. The Intelligent Rebuild Cost Validation service provides commercial property owners with more accurate reinstatement values to cover their buildings, while reducing insurers’ and brokers’ exposure by enabling correct premiums.
Towergate’s research on underinsurance in commercial properties
The Towergate report highlighted that commercial properties in the UK, such as shops, factories, and warehouses, were underinsured by an estimated £325bn. This estimation showed that a staggering 80% of commercial properties in the UK had insufficient coverage to meet the cost of rebuilding. This high level of underinsurance poses a significant risk to insurers and brokers, as it could result in a substantial payout that is not covered by the policyholders’ premiums.
Lack of high-quality rebuild cost data is a cause of underinsurance
One of the primary causes of underinsurance in commercial properties is the lack of high-quality rebuild cost data. Commercial property owners often fail to update their property’s reinstatement value as building costs rise in the market. As a result, their policies become outdated, leading to insufficient coverage. Inaccurate reinstatement values can cause further complications such as lengthy claims processes, disputes with insurers, and even litigation in some cases.
Intelligent AI’s new platform provides accurate rebuild cost data
Intelligent AI’s new platform is designed to solve the issue of underinsurance in commercial properties by providing accurate rebuild cost data. The platform uses Artificial Intelligence (AI) algorithms to evaluate a range of factors such as geographical location, building type, and materials to determine the most up-to-date reinstatement value for a property. By providing more accurate data, the platform empowers commercial property owners to make informed decisions about their insurance coverage.
Impact of Global Events such as Covid-19 on Underinsurance
Global events, such as the COVID-19 pandemic, have exacerbated the problem of underinsurance. Lockdowns and restrictions have driven up the cost of construction materials and labor, making accurate rebuild cost data more crucial than ever. The pandemic has also led to an increase in remote working, causing many insurance companies to re-evaluate their risk-based pricing models. Accurate data about the true value of commercial properties is essential in this decision-making process.
Description of Intelligent AI’s fully automated and cloud-based platform
Intelligent AI’s new platform is fully automated and cloud-based, providing fast and efficient results. The platform can be accessed via any device with an internet connection, making it easy for commercial property owners and insurers to use. The system stores all data in the cloud, ensuring that it is secure and protected from external threats. Furthermore, the platform is incredibly user-friendly, requiring only basic inputs from the user, with the system doing the rest.
The platform is working with intelligent AI’s existing cloud-based underwriting platform
Intelligent AI’s new rebuilt cost validation platform will work alongside the company’s existing cloud-based underwriting platform, which leverages advanced machine learning to analyze and assess application data. This will enable insurers and brokers to obtain more accurate data in real-time. The combination of both platforms will certainly revolutionize the property insurance market.
The Platform is Being a “Game-Changer” for the Property Insurance Market
The new platform from Intelligent AI has the potential to be a “game changer” for the property insurance market. The service offers a cost-effective solution to undervaluation, underinsurance, and also provides intelligent underwriting. By providing more accurate data on the rebuild cost of commercial properties, the platform will offer a higher level of protection for insurers, brokers, and commercial property owners alike.
Benefits for commercial property owners, insurers, and brokers
Intelligent AI’s new platform will bring significant benefits to commercial property owners, insurers, and brokers. The rebuild cost validation service offers a quick and cost-effective method to determine the correct reinstatement value of commercial properties. By sharing this accurate data with insurers, brokers can offer more precise premiums, reducing the risk of underinsurance while providing more substantial payouts in the event of claims. This platform not only benefits insurers and brokers, but it also empowers commercial property owners to obtain the accurate coverage they need.
The Platform has the potential to reduce insurers and brokers
The Intelligent Rebuild Cost Validation service from Intelligent AI offers the potential to reduce insurers’ and brokers’ exposure by enabling correct premiums to be charged. With smarter pricing based on accurate data, the risk of underinsurance can be dramatically reduced. In addition to this, the platform will reduce the incidence of lengthy and costly claims processes, saving insurers, brokers, and property owners time and money.
Intelligent AI’s new platform is set to revolutionize the property insurance market. The company’s commitment to providing more accurate data on commercial property rebuild costs will enable commercial property owners, insurers, and brokers to make informed decisions that reduce the risk of underinsurance. This potentially game-changing service will benefit all parties involved, enabling the insurance solutions’ workflow to operate at a higher level.