Nearmap, a provider of property intelligence to insurers, has received regulatory approval for its predictive AI-powered peril models and scores to be adopted for rating and pricing in 26 states, plus Washington, D.C.
The AI models developed by Nearmap are used in predictive vulnerability and claim scores covering wildfire, hurricane, wind, and hail risks.
Leveraging trusted third-party regional hazard data, historical claims, and damage datasets, along with computer vision technology that detects roof conditions and property attributes, insurers can generate accurate insights for rating.
These scores serve as precise and actionable predictors of future claims for various perils, enabling insurers to make informed decisions.
The models were completed in collaboration with Milliman Appleseed, an insurance advisory organisation, which provided its extensive ratemaking and regulatory filing experience.
As a result, Nearmap predictive peril scores are reviewed and filed for fast, cost-efficient adoption, and insurers can quickly integrate them into workflows to better match premiums with risk.
Nearmap plans to expand coverage to the rest of the US.
Peggy Brinkmann, a Principal at Milliman: “It’s important for insurers to continue to innovate and for regulators to ensure that the new technologies are consistent with state laws and regulations.
“But no insurer wants a rate filing to be delayed because the regulator hasn’t seen a new tool before. Milliman Appleseed is helping deliver solutions like the wildfire, hurricane, and wind/hail scores in an efficient manner that benefits insurers, insurtechs, regulators, and ultimately policyholders.”
The predictive vulnerability and claim scores are available through the Betterview property intelligence platform, the Nearmap software solution for insurance.
As well as these models being approved to use in 27 US jurisdictions, insurers will also benefit from a claims prediction lift, providing deep insights into wildfire, wind, hurricane, and hail risks.
Other benefits include a transparent explanation of vulnerability and claims peril scores, high-resolution aerial imagery captured up to three times a year, and a comprehensive suite of computer vision detections with periodic model updates that leverages AI.
Madeleine Lopeman, Director of Data Science at Nearmap, stated: “Pre-filing our models for state approvals is a great value-add for insurers. Once a state approves a score, it allows the insurer to quickly incorporate it into their insurance rates without extra time, cost, and uncertainty.
“In addition to pre-filing, we can also support carriers’ own filings, providing data and documentation to ensure a smoother rate filing process from the start.”
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