To succeed a carrier needs data—the right data and at the right time—in order hunt down the correct values of properties in their book. Risks can be large, obvious ones—elephants—or small ones that can be overlooked—mice. Determining the right value and therefore the risk allows insurers to calculate the most accurate premium rate.
In the Intelligent Insurer article Why insurance can be like a ‘mouse safari’ Todd Rissel, CEO of e2Value, Inc., discusses the importance of accurately pricing risk, how insurtech can impact the insurance industry and why the correct value is needed so that both carriers and policyholders know their risk.
The development of fintech and insurtech helps with uncovering data. However, insurtech can be compared with the skills and equipment needed in golf. Just as with golf, where different clubs and swings are needed depending upon whether you are on the tee, the rough, the green, etc., more than one technology is needed to cover all aspects of insurance. The tools needed for each type of ‘safari’ will be different. Using new technology can “help identify the many small risks as well as the more obvious problems,” says Todd Rissel, CEO of e2Value.
Value is at the base of everything.
Insurance has three costs: claims, delivery and acquisition. Insurtech can be used on the acquisition and delivery side or on the loss prevention side. According to Todd Rissel, “We have yet to see anyone get to both sides of the equation with a single insurtech approach.”
e2Value has focused its business on providing accurate replacement costs for residences, commercial buildings and farm and ranch structures. Many buildings are underinsured yet it may not be obvious. Finding these camouflaged structure values is the key to success.