5 ways technology is changing homeowners insurance

The COVID-19 pandemic has changed numerous aspects of our daily lives, but despite the economic pressures, owners have continued to invest in maintaining and remodeling their properties.

For insurers, the challenge is how to identify and verify the changes that have been made on insured homes. As a result, many are turning towards digital technology and implementing advanced analytics, data-first strategies and virtual technology to help improve their businesses.

Virtual inspections, change detection via proactive monitoring, online building permit information, replacement cost data and virtual technology are just some of the ways insurers are accessing new digital technologies to get a better view of property risk.

Read more: What digital tech may help insurers identify property changes

The housing market has remained relatively stagnant during the pandemic. But as the economy starts to open up again, housing prices have risen rapidly, achieving their highest annual growth since 1979.

But while homeowners and buyers have been taking full advantage of the housing boom, the insurance industry has been slow to explore how it can leverage technology to keep up with the new insurance landscape.

How will risk be impacted by lifestyle changes post-pandemic, such as working from home instead of commuting? How will the frequency and severity of claims be affected with property owners spending more time at home? Can insurtech provide the answers?

Read more: Is insurtech keeping up with the housing boom? 

Nationwide continues to implement digital technology in its business operations. New partnerships that impact the company’s commercial fleet as well as its smart home property monitoring program are just some of the ways. 

The company’s partnership with NoCell Technologies aims to utilize technology to help remove distraction risk for its fleet of truck drivers. “Trucking businesses have more advanced technology and safety cultures than ever before to reduce risks for drivers and the motorists around them,” said Gary Flaherty, senior vice president of E&S commercial auto at Nationwide.

The company also expanded its partnership with DIY smart home technology firm Notion. The new deal will give customers who opt into the smart home program a discount on the sensor-driven home monitoring system and savings on their homeowners insurance policy premiums.

Read more: Nationwide expands smart home, commercial fleet IoT