In a significant development for the insurance sector, InsurTech company Intelligent AI has teamed up with the Building Cost Information Service (BCIS) to unveil a cutting-edge property rebuild cost platform. This newly launched Intelligent Rebuild Cost Platform (IRCP) is designed to tackle the pervasive issue of underinsurance by harnessing advanced artificial intelligence technology.
The concept for the platform was refined through the innovation hub Lloyd's Lab, with input and collaboration from prominent insurers, brokers, and chartered surveyors. By automating the dissemination of crucial property data and valuations, the IRCP directly addresses the challenges posed by underinsurance, an issue that leaves many property owners vulnerable to potential financial setbacks due to outdated reinstatement values.
Recent examinations underscored the gravity of the problem, revealing that a portfolio comprising 355 commercial properties was underinsured by a staggering £1.17 billion. This situation highlights the importance of accurate and up-to-date valuations for both residential and commercial properties.
Utilising a range of technologies, the IRCP integrates open data, sophisticated data analytics, BCIS reinstatement values, planning applications, and satellite imagery. This comprehensive integration facilitates the fully automated process of rebuild cost validation, capable of delivering precise reinstatement valuations in mere seconds—a process that traditionally would take days or weeks.
The platform is versatile, assessing everything from single residential properties to large-scale commercial portfolios worth billions, with the capability to conduct accurate annual evaluations. This development not only improves efficiency but also significantly mitigates the risks associated with underinsurance.
Anthony Peake, CEO of Intelligent AI, highlighted the potential impact of the platform, stating, “Whether it’s a residential property where a few hundred pounds difference in the premium could save the customer potentially missing out on hundreds of thousands of pounds in a payout, or a commercial portfolio where the declared value is upwards of a billion, it’s about safeguarding people’s homes and livelihoods should the worst happen.”
James Fiske, CEO of BCIS, echoed this sentiment, acknowledging the practical challenges policyholders face. He remarked, “We know policyholders want to be adequately covered, but annual site visits for a whole portfolio may be unfeasible. From portfolio managers using IRCP to perform an immediate risk assessment to surveyors using pre-populated assessments as a starting point, the intention is to improve efficiencies, save time, and reduce risk for everyone in the process.”
Additionally, Johan Berg, Head of Large & Complex at Gallagher, noted the pressing issues related to inflation and increased construction costs, which exacerbate underinsurance concerns. He commended the IRCP for its role in addressing and preventing these issues: "By using the intelligent rebuild cost platform from Intelligent AI, underinsurance issues are not only addressed but also prevented.”
James Brown, Innovation Analyst at Tokio Marine Kiln, also weighed in, expressing his enthusiasm for the insights gained through collaboration with Intelligent AI: “Working with Intelligent AI and understanding more about their rebuild cost platform has created exciting insight to understand more around rebuild cost valuations.”
The launch of the IRCP marks a pivotal advancement in the insurance sector, with its capabilities poised to transform how rebuild valuations are conducted and ensuring that properties are adequately insured.
Source: Noah Wire Services