Property values vary from property to property and are markedly different depending on many factors including neighborhood statistics such as crime rates, proximity to hospitals, schools and malls, as well as physical characteristics such as floor space and the specific building material used. When it comes to risk profiles, understanding how a property may be affected by natural disasters also significantly impacts how underwriters assess a property. Discrepancies between the sum for which properties are valued and the sum for which they are insured can result in problems for both agent and client. In fact, errors and omissions in property data can expose agents to significant risk that could cost careers. However, when agents are able to access the right property data at the right time, they can build long-term trust with their clients and ensure strong customer retention.
The rapid growth in severe weather events has placed significant pressure on carriers with many having to shut their doors after paying out multiple claims due to a major natural disaster such as flood, wildfire, or earthquake. This has forced some carriers to exclude certain properties and, in some instances, entire regions, from cover due to risk they deem to be too high. In other instances, some properties are still insured for an outdated replacement value that no longer reflects the lower selling prices in the neighborhood, leaving customers paying higher premiums than they should. Or, carriers may fail to adjust the insured value of their customers’ property upwards as property prices increase over time. Solutions like ATTOM and CoreLogic provide comprehensive property data allowing agents to make more informed decisions, provide better service to clients, and manage risks effectively. However, the complexities around implementing and connecting an agency’s operational systems to ATTOM’s and Core Logic’s database make critical property data challenging to access and orchestrate.
Manually searching hundreds of databases and thousands of data points is time consuming and can result in missed or incorrect information. Aggregate Valuation Models (AVMs) use hundreds of available data points to give a more accurate and up to date valuation. This is particularly useful for insurance agents and often exposes discrepancies between what the property should be valued for and what is listed in the Agency Management System (AMS). When properties are under insured, agents can bear the legal brunt. Similarly, when they are over insured, agents are likely to lose a client when they find out they have been overpaying on their premiums. Understanding the hazard risk and catastrophe risk for each area is also important for agents hoping to isolate and sign new clients with their preferred carriers, each of which will have a preferred risk portfolio. Carriers prefer working with agents who bring them pre-vetted clients and when agents get the risk portfolio wrong, they risk their relationship with carriers. Valuable relationships with carriers and clients depend on accurate data, available on demand, in an appropriate format.
Agencies that invest in a Data Integration Hub (DIH) like Synatic can integrate property data from InsurTech solutions like ATTOM and Core Logic into their AMS, making it easy for agents to evaluate the level of risk associated with insuring a particular property. In addition to integrating data, Synatic can be used to automatically prefill information fields within an agency’s AMS or automatically populating ACORD forms making it easier to rate and quote customers. This type of data integration and automation reduces the chance of E&O, while also ensuring a more accurate insurance premium pricing at a granular and personalized level, lowering risk to both customer and insurer.
Customers who get proactive service from their agents are less likely to switch. In fact, they are often happy to pay a premium to ensure they get the added value from their agents who are monitoring their properties. Leaning into property data and using Synatic to ensure that the right person can access the right data at the right time, means agents can be alerted to changes and they can help their clients adjust their cover accordingly. This personalized service delivers a vital customer retention benefit and injects a good deal of sustainability into their operations. When agents have relevant data at their fingertips, they can work with carriers to ensure their clients are properly protected for all eventualities. In addition, agents can quickly determine if a new lead is appropriate to the list of carriers they work with, based on their risk profile. Using Synatic’s DIH makes it easier for agencies to leverage all the available property available to make more informed underwriting and pricing decisions that can lower the risk to both customer, carrier, and agent.
