
Drones, Satellites, and Insurance: Cutting-edge Tools for Insurance Underwriting
The use of unmanned aerial vehicles (UAVs or drones) to inspect properties for underwriting purposes and after-loss inspections has seen significant growth. While manual, in-person inspections and assessments are still very much used, technology is playing a bigger role in insurance. Consulting firm Deloitte says the insurance sector accounts for nearly 20 percent of drone use in the United States (behind real estate and industrial inspectors).
With drones, insurance companies can get precise information in a very timely way. For example:
- Checking high spaces, such as rooflines.
- Assessing unsafe areas, such as properties in a flood zone.
- Heat sensors on drones gather data about water damage.
- Collecting high-quality photos and videos.
Insurers can also use satellite images to gather accurate data. There are instances of insurance professionals using satellite imaging to count bricks or tiles – or to assess vegetation around a property as they consider risk from wildfires.
In 2023, the NOAA reported that the insurance industry paid over $18 billion for weather-related claims. After a natural disaster, satellite images can reveal damage to buildings and changes to the local environment without the significant costs, risks to inspectors, and time required to complete manual inspections. These efficiencies are substantial given the increased frequency of extreme weather events, which result in large areas that must be quickly assessed. Embracing available technology enables insurers to respond to disasters faster.
- It can provide real-time data to insurers.
- It may mitigate work hazards because a drone can gather data from risky areas that aren’t safe for people to inspect.
- It improves efficiency when processing claims and reduces operational costs.
Imaging advancements will continue to play a growing role in managing environmental risks and can help insurers with improved assessment capabilities provide faster service. As technology evolves, insurers can even transform 2-dimensional images into 3-dimensional models. Alternatively, hundreds of images can create high-quality orthophoto maps that would have previously required an expensive geodetic survey. Insurance carriers can even follow repairs or remediation in real-time to ensure work is done per requirements.
Technology has changed the way many industries conduct business and insurance is no exception. For more information, please contact Beacon Hill Associates today.
Type: Blog