In a perfect world, insurers would be able to predict any number of property risks for their policyholders, and while technology has definitely expanded those opportunities, they're not perfect…yet. Meredith Brogan, President of Network Solutions for Crawford CAT and WeGoLook, provides an overview of how companies are combining different technologies to effectively manage their risk portfolios and respond more quickly in the aftermath of a disaster.
Transcription:
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Patti Harman (00:07):
I'm Patti Harman, editor in chief of Digital Insurance. Now, in a perfect world, insurers would be able to predict any number of property risks for their policy holders, and while technology has definitely expanded those opportunities, they're not perfect yet. But the use of mapping technologies, drones, AI, and more will have a positive impact on how carriers are able to predict and prepare clients for weather events as well as assess and respond to claims in their aftermath. Forecasters are predicting another overactive hurricane season with an above average number of storms for the Atlantic hurricane season. So technology will play an even more important role in the coming months. Now today, Meredith Brogan, president Crawford Catastrophe and We Go Look, will provide an overview of how companies are combining different technologies to effectively manage their risk portfolios and respond more quickly in the aftermath of a disaster. Thank you so much for joining us today, Meredith.
Meredith Brogan (01:24):
Oh, thank you so much for having me, Patti. I'm excited to be here.
Patti Harman (01:28):
I think this will be a great conversation. So for our viewers, I spent about 20 years covering the disaster restoration industry before I moved into the insurance industry. So I have covered more than my fair share of hurricanes, fires and other disasters. I've also been able to watch new technologies introduced into both the restoration and the insurance industries. So Meredith, can you tell our viewers how have weather risks changed over the last five to seven years?
Meredith Brogan (02:01):
Okay, in one word, significantly, over the past five to seven years, we have found that weather risks are much more pronounced than ever before. So what we're finding is that there is many more or more frequent and more severe weather events. The impact that we're seeing on the insurance industry, there's basically three critical areas. The first one is a huge increase in claims volume, which means there's an increase in cost. If we go back seven years to 2017, from what I've heard, I believe that that was still the costliest hurricane season on record. There were, I believe 17 named storms and 10 hurricanes. That's the year we had Irma and Maria. So there was quite a bit of activity. Now you might be wondering why I'm going back seven years. I think it was just the beginning based on the weather trends, what we're seeing is that there could be much more coming in the future.
(03:17):
You already mentioned in 2024, I read this morning in an article that from a research institute that they're predicting about 24 named storms and maybe there's a possibility for 11 hurricanes. Now, not all of those hurricanes are going to hit landfall, but the more hurricanes, the more likelihood. So the first trend that I'm seeing is really in the increase in the volume overall. The second trend that I'm seeing is around the increase or the rise in insurance premiums. That's really as a result of the claims volume. The insurance carriers are seeing where the natural disasters are having an impact and there certainly is an increase overall. Lastly, what we're seeing is that there's a huge investment in technology. So because of the rise in the volume and the rise in the premiums, insurance carriers are very interested in predictive analytics so that they can have better and more accurate information
Patti Harman (04:24):
And they have access to so much data now, and I think as we use more generative AI and other technologies, it helps them to kind of get their arms around that data and just really use it in a far more constructive way. What technologies are available to help carriers better manage weather related risks in the aftermath of an event? And what types of technology are having the most impact in this space?
Meredith Brogan (04:54):
So what I'm seeing is that carriers and different suppliers are adopting cutting-edge technology today. So just to give you a few examples, one is satellite imagery. So what we're finding is that right after an event, if you get those images, it gives you much better insight into where to deploy your resources so that satellite imagery can really be real-time post an event and it can be very helpful in the deployment of resources. Another type of technology that I'm seeing in the adoption is around CAT modeling software. So that's really where we're taking all of the data sets. It could be your weather patterns, it could be around geography, and of course your historical claims information. Taking all of that information, the carriers are able to show different types of scenarios. What if we have tornadoes in a particular area? What types of losses are we going to see? What about hurricanes and floods and wildfires? So it really gives them an opportunity to predict where the losses could be, the severity, and then what type of resources they need to respond quickly. Really the third thing, Patti, I know this is one of your favorite topics, so I have to mention AI, artificial intelligence. This, of course, is another key area. What we're seeing on the claims side is that it can impact everything from FNOL all the way to settlement. So AI is really playing a part in the entire journey today.
Patti Harman (06:38):
Yes, it is, and it'll be really interesting to see how the industry continues to adapt it and to use it in new and different ways. When I interview people, a lot of times I'll say to an executive, oh, what technologies are you seeing in the next three to five years? And at this point it is changing so quickly, it's more like, so what do you think you're going to see in the next 12 to 18 months? Because three to five years that technology may not have been created now, but it could and it could change everything literally on a dime. So you talked about some of the technologies we've seen and technologies like drones have been available for quite some time. What advances are you seeing with this particular type of technology and how is the insurance industry using them now?
Meredith Brogan (07:30):
Okay, I'm super excited that you asked me a question about drones. Actually, on our We Go Look side of the business, we have an entire drone network, so I'm very familiar with the capabilities. What we're seeing from drones is that we're able to capture, if you know there's a hurricane coming, you can capture images right before the event occurs and then you can send the drones up after the event. You can compare to see where there's damage. We actually, several years ago during a hurricane, we deployed lots of different drones and drone operators were on the ground very, very quickly. What we found is that you can actually inspect in under four days when in those times the industry average was closer to 30 days. So drones can help you inspect properties very, very quickly and then it can take it through the whole claims handling process. So that's one method to get information and sometimes you can even handle desk adjusting from those images.
Patti Harman (08:36):
Not to put you on the spot, but I know we can use drones outside, but can you use them on the interior of a large commercial building if there was, say a fire in a warehouse or a manufacturing plant or something like that?
Meredith Brogan (08:51):
Yeah, you could certainly, when there's large spaces, we typically do stick to outside and that way we can very clearly define the geography of exactly where we want to take those images. Typically, we like to have boots on the ground and people doing the interior, especially when there's building damage. Yeah, alright,
Patti Harman (09:14):
Just figured I would ask. Do you find that the adjusters are becoming more comfortable with using technology as part of the claims process? And then what are some of the benefits that they're seeing even as the claims process becomes more automated? As I talk to them, they kind of have a love-hate relationship, I think, sometimes with technology.
Meredith Brogan (09:39):
I think you're spot on. I think that we are still in the beginning stages in the evolution and the adoption of InsurTech technology. I read an article that the global InsurTech marketplace is estimated to be between three and a half and 4 billion. So clearly, there's a lot of investment in this space. However, are we really adopting and are we using all of the available technology today? I think it's an exciting time for adjusters. I think it's going to continue to be exciting over the next 10 years, but what we're seeing is that one blocker to adoption is around change management. What I have found my history is that many times we'll tell adjusters, Hey, use this new tool because it'll save time, it'll save costs, it'll be more accurate. And typically the adjuster is comfortable with their current processes and their legacy systems. What I found is it's not good enough to give a demo.
(10:45):
What you need to do is show in real time, real situations the benefit. So as an example, we were working with some adjusters that do roof inspections and we said, let's try the 3D imaging. You take eight pictures from the ground, you get all of the images, all of the measurements for the residents. And what we found when you do it in real time with an adjuster in Fort Lauderdale, Florida in August, the adjuster found that it actually took 50% less time to inspect a roof because he didn't have to do every measurement of every slope. That was real time benefit. And because he actually got to see it, experience it, adoption was immediate. So I think that from an overall adoption perspective, we just need to focus on change management and really show the benefit of the tools.
Patti Harman (11:45):
Yeah, well especially when you're thinking in the aftermath of a significant hurricane, that really does make a difference, because when you have multiple properties to visit and you're trying to do all of that, and it's interesting that you mentioned about the measurements because that is one feature that I have heard from multiple adjusters and they're like, that's a game changer because the way that they used to have to measure everything, and I remember writing about technologies that they were using just to measure the interior of a space so that really, that would be a significant advancement for them. Just a reminder to our audience, if you have any questions, please feel free to put them in the chat and we will get to them later. We've talked about how adjusters are using the technology. Are policyholders receptive to the use of technology as part of the claims process and is it changing their expectations even?
Meredith Brogan (12:46):
I would say absolutely. Let me give you two examples. So one example is self-service technology. So when there is damage, if it's low complexity, a policyholder can receive a link or an app to go on and capture photos of their damage themselves. And what happens is they feel like they're part of the process, they can submit the photos, and sometimes just using those images it can go through a desk adjuster. So I have seen adoption there. Many policyholders are not comfortable taking their own photos. So in those cases, we can always send an inspector out from We Go Look to take the pictures themselves and still the policyholder can feel like they were part of that process and understand it a little bit better. So that's one way that I've seen policyholders participate in and adopt some of the technology.
(13:42):
The second thing, and this is where I've really seen improvement, is around communication. We have the ability to communicate in real time and what happens when that policyholder gets a text message or an email or they can log onto a portal and understand where their claim is in the process, they are much more comfortable with what's happening. It's almost like they say the pizza tracker, the pizza's being made, the pizza's in the oven, the pizza's ready for delivery, so that policyholder can actually follow their claim and understand the different steps. So they're participating in the journey, which makes it even from an overall satisfaction, they feel much more satisfied because they understand what's happening
Patti Harman (14:31):
And I think that's really important and they just want to know what's going on just like they do with the pizza. And it's just a great way to connect and reinforce what's going on for them so that they aren't surprised or they know how long something's going to take or whatever. With the increased use of technology across the insurance space, do you have any concerns about its utilization or how it could be misused or provide inaccurate information?
Meredith Brogan (15:02):
Okay, that's a tough question about concerns. I do, though, I do have a concern. What happens sometimes is that we get excited about the technology and it is exciting and it can be a game-changer in terms of speeding up process time. It can lower costs, but at the same time, we need to focus on people. So when the policyholder is filing a claim, many times it's a very difficult time in their life. They have their residence, their property has been destroyed, they're going through a very difficult time. They do want fast and accurate claims handling, but they also want the empathy piece. So as we focus on technology, I think it's important to make sure that technology is really people first, technology that it enables us to communicate more clearly and communicate with empathy with the policyholders so it improves their overall experience, not detracts from it. So my concern is just that we focus so much on technology, we just want to make sure it's a balance between technology and people
Patti Harman (16:16):
And it really is a very fine line to balance that so that they get what they want, the way that they want it, and that they feel comfortable in terms of using that technology. What excites you the most about how carriers and claims professionals are utilizing these new technologies?
Meredith Brogan (16:36):
One thing we haven't talked about that actually excites me the most is smart triage. We now have the ability during the claims process right at FNOL, so right at your first notice of loss, we have the ability to take information about that unique claim and triage it down the right path. And what I mean by that is we are talking about all of the different technology that's available today. We talked a little bit about change management. So let's say the adjusters are comfortable using all of the different technology. They may not know when is it the right situation to maybe send that 3D modeling technology to capture the measurements. When is it the right time to send self-service technology or a field adjuster? Maybe you need the boots on the ground, the expertise in a particular situation. So I think that the game changer is really that smart triage and giving us an opportunity for the adjuster to quickly identify based on the facts, the optimal path for a particular claim.
Patti Harman (17:50):
It really is. And then it helps them prioritize where to focus and what questions to ask and how to best serve their policyholders at that time. What kinds of technology do you think will have the most impact on the insurance and claims industry or help the industry monitor or handle weather related risks? And going to one of my comments I made earlier in the next 12 to 18 months.
Meredith Brogan (18:19):
12 to 18 months, we're not giving me much time. It's not over the next, if you think it'll be longer, we can,
Meredith Brogan (18:28):
But, You know what? Over the next 12 to 18 months, I would say it's all about AI. And if we take a step back, there is, I'm sure you have talked about, and you've heard about the war on talent. So everybody is talking about our experts, these brilliant adjusters who really know this space and they have seen so much over their careers. Many are retiring. I've talked to adjusters that say, I want to retire, but I wouldn't mind working a day or two a week or I wouldn't mind working a few hours here and there. Interestingly, I talked with a carrier recently who said that some of these individuals who are transitioning into retirement, they are actually now using them to help train AI. How perfect is that? That it's our best and brightest, the most talented and experienced adjusters that are actually working with AI so that as AI produces results, let's say it's on smart triage, making a recommendation that an adjuster can go behind them and say, well, actually we need to tweak this because given this particular situation, maybe it's a flood, perhaps it should go down a different path. So they're helping to perfect the AI that will really be impactful in the future.
Patti Harman (19:55):
Wow. I love the idea of using all of that institutional knowledge and they're the perfect ones to do it because if you're trying to literally catch lightning in a bottle and do that intellectual transfer of what they know, that's a great way to capture a lot of that information and make sure it's that it's around for everyone to benefit from. So great. We've covered a lot over the last few minutes. Is there anything I haven't asked you that you would like our audience to know?
Meredith Brogan (20:29):
Well, I'm having so much fun. I want to keep going and talking about technology. We always focus on it from a purpose perspective on restoring and enhancing lives, businesses and communities. So it's all about what can we do? How can we help the policyholders to restore in their time of need? And I think that it's going back to what we said earlier, it's that balance of the technology, but it's digital that simplifies. We want to make it simple. And then on the people side, it's really having expertise that's deep and eminent, and ultimately those two together produce quality. So really setting the industry benchmark.
Patti Harman (21:18):
Great. Well thank you so much for joining us today, Meredith, to share some insights on the various technologies helping insurers track weather-related risks and other types of risks. Thank you to our audience for joining us as well. We hope you'll come back and join us on July 2nd when we share the results of the Digital Insurance Claims Innovation survey. So that'll be a nice follow-up to this interview. Thank you everybody, and have a great afternoon.
