Your house burns down while you’re out of the country, on a family vacation. Ultimate nightmare, right? What if your insurance company knew about it before you did? And notified you that it happened, noting that they also rented a home for you – same number of bedrooms, same school district – with temporary furniture already delivered and the fridge already stocked with your favorites, had the damage assessed (by drone cam, video attached) and engaged a full restoration crew – whose payment has been tokenized, removing the worry of fraud – so you’ll need to make some decisions about paint and carpet colors as soon as possible. Oh and they direct-deposited your proceeds for buying all new things, at market prices.
Using AI and machine learning, all of this is already possible, and it’s redefining the first notice of loss (FNOL) process, long the bane of a property owner’s existence. Recent surveys show that 68% of people would rather go to the dentist than have a claim adjusted, and 10% of people would rather die than go to the dentist, so, you do the math. It’s a process ripe for the automated precision of companies like ours.
We use 17 data sources to track weather for our enrolled addresses. We notify when bad weather is on the way, and automatically report when it has occurred. Our proprietary algorithm gets smarter every day, and is already right 90% of the time when predicting weather damage. If you’re the first to know about damage, you can be the first to get repaired.
FNOL refers to that moment the insurance carrier is notified that a potential loss has been incurred. It hasn’t changed substantially in decades. What has changed is the nature of ownership, with a major upsurge in institutional owners, and investors displaced from the property and the process of restoration. More and more real estate is owned by those who do not live there, complicating every aspect of recovery. Not only are owners often the last to know when or how much damage has occurred, it is often unclear who is responsible for what types of repairs. Whomever, someone has to notify the carrier, who schedules an adjuster, sometimes weeks later, who gets up on the roof to assess damage, goes back to the office, writes up a report, which they still snail mail, and you are then faced with the often-arbitrary judgment of your damage, your coverage, and the difference, a.k.a. your pocket.
Insurance claim optimization through automation will greatly improve ease of use, especially after a major weather disaster. Our work is about keeping family homes safe and sound. It is our imperative to ensure that property owners know sooner when severe weather strikes.