Kin Insurance
Digital Insurance conducted an email interview with Angel Conlin, chief insurance officer of
Kin Insurance Q&A: The role of insurance, tech in climate change
May 10, 2023 6:24 AM
Jordan Vonderhaar/Bloomberg
How does your technology and data enable Kin to help serve customers in high-risk areas?
The home insurance industry needs to be able to respond quickly to changes in climate, tech, and consumer preferences. However, legacy insurers have been slow to respond to change, instead relying on decades-old tech and primarily selling through expensive agent distribution channels. Kin was built from the ground up to make home insurance more convenient and affordable by cutting out administrative and agent-related expenses.
Our technology enables us to reduce and even eliminate many of the steps and expenses associated with traditional ways of doing business in the insurance industry. By factoring in property records, permit data, and aerial imagery, among other sources, Kin gains the best possible understanding of the physical properties of homes and how they will be impacted by extreme weather. This helps customers receive the right coverage for the right price.
From quote to claim, everything we do is designed to deliver the best possible experience for the customer.
Our technology enables us to reduce and even eliminate many of the steps and expenses associated with traditional ways of doing business in the insurance industry. By factoring in property records, permit data, and aerial imagery, among other sources, Kin gains the best possible understanding of the physical properties of homes and how they will be impacted by extreme weather. This helps customers receive the right coverage for the right price.
From quote to claim, everything we do is designed to deliver the best possible experience for the customer.
How does Kin use data and weather simulations for assessment and price risk?
We use data to deliver a better customer experience. We use granular data to help us quantify the frustration many folks have experienced with other insurers, from not being able to get insurance to negative claims experiences. In addition to helping us create new products, cut costs, and operate in regions most impacted by severe weather, we use data to:
Find out what is important to homeowners when it comes to insurance coverage and protection
data and technology to improve the customer experience doesn't have to be earth-shattering, either. Something as simple as aerial mapping can help us find the most affected areas after a major storm, and using SMS to check in on customers – like we did after Hurricane Ian – can get the right resources to the right places and jumpstart claims sooner.
Getting new data sources in place means reimagining legacy systems and old ways of doing business, but it's worth the effort. Granular data helps us see the real risk each home has, and that enables us to insure more homeowners in catastrophe-exposed areas. We use satellite imagery and thousands of data points to gather information about each home and determine risk within the home's neighborhood. So while Home A is still in the risk zone, it might have significantly decreased risk because of its construction, risk mitigation devices, or surrounding topography. By fairly assessing each property, we can manage risk better and offer lower rates.
Find out what is important to homeowners when it comes to insurance coverage and protection
- Tailor our marketing to their preferences
- Optimize the customer experience by resolving issues quickly
- Remove inefficiencies in both applying for insurance and processing claims
- Reduce company overhead and pass savings onto our customers
Getting new data sources in place means reimagining legacy systems and old ways of doing business, but it's worth the effort. Granular data helps us see the real risk each home has, and that enables us to insure more homeowners in catastrophe-exposed areas. We use satellite imagery and thousands of data points to gather information about each home and determine risk within the home's neighborhood. So while Home A is still in the risk zone, it might have significantly decreased risk because of its construction, risk mitigation devices, or surrounding topography. By fairly assessing each property, we can manage risk better and offer lower rates.
What role does insurance play in the conversation of extreme weather and climate?
The homeowners insurance industry is built on risk models that help companies decide which homes to insure and which ones to walk away from. Forecasting how much they might pay in claims allows insurers to cover those costs. The more accurate an insurance company's predictions are, the more likely it is for the company to be profitable.
Unfortunately, climate-related risks, such as rising seas, more frequent and powerful hurricanes, and worsening droughts, make forecasting more difficult. And when insurance companies aren't sure what the risks are, they take steps to protect themselves. This often means leaving areas most exposed to climate-related risks.
Legacy insurance companies are built on outdated and inflexible technology. This makes it difficult – even impossible – for them to respond quickly to new information and external changes. Most also rely on just a few details to figure out how risky a home is to insure, and much of the information they get comes directly from the person applying for coverage. Those answers for some key questions are often guesses at best. Additionally, legacy insurers are responding to climate change by tightening their underwriting guidelines, and the few consumers who fit those guidelines may find themselves priced out of coverage.
Kin integrates weather modeling into our tech infrastructure, such as how we geocode every home to understand its position relative to other topographical landmarks. Our data science, AI and aerial imagery capabilities help us accurately price risk for new policies and when we're helping customers impacted by natural disasters. It's this kind of ultra-granular exposure measurement that enables Kin to serve high-exposure markets.
While it's true every home will likely be impacted byclimate change , that doesn't mean every home will be impacted the same way. Everything from the building materials to the foundation type to the terrain it's built on can impact a home's ability to survive major damage. That's why Kin retrieves reliable data from a variety of sources, including the government, satellite images, and real estate archives. Once we've collected this data, we use advanced technology to analyze it thoroughly. This allows us to get more accurate readings of how much money a home should be paying for insurance – even in regions that are repeatedly bombarded by hostile weather. The end result is affordable home insurance for more people.
We are currently writing in Florida, Louisiana, South Carolina and Mississippi. We also have several more state expansions planned throughout the remainder of this year, each with its own unique weather challenges.
Unfortunately, climate-related risks, such as rising seas, more frequent and powerful hurricanes, and worsening droughts, make forecasting more difficult. And when insurance companies aren't sure what the risks are, they take steps to protect themselves. This often means leaving areas most exposed to climate-related risks.
Legacy insurance companies are built on outdated and inflexible technology. This makes it difficult – even impossible – for them to respond quickly to new information and external changes. Most also rely on just a few details to figure out how risky a home is to insure, and much of the information they get comes directly from the person applying for coverage. Those answers for some key questions are often guesses at best. Additionally, legacy insurers are responding to climate change by tightening their underwriting guidelines, and the few consumers who fit those guidelines may find themselves priced out of coverage.
Kin integrates weather modeling into our tech infrastructure, such as how we geocode every home to understand its position relative to other topographical landmarks. Our data science, AI and aerial imagery capabilities help us accurately price risk for new policies and when we're helping customers impacted by natural disasters. It's this kind of ultra-granular exposure measurement that enables Kin to serve high-exposure markets.
While it's true every home will likely be impacted by
We are currently writing in Florida, Louisiana, South Carolina and Mississippi. We also have several more state expansions planned throughout the remainder of this year, each with its own unique weather challenges.