Nearmap Unveils Advanced Portfolio Benchmarking Tool for Insurers

Nearmap, a global leader in property intelligence, recently announced the launch of its innovative Portfolio Benchmarking tool. This new offering aims to provide property and casualty (PC) insurers with a deeper understanding of their portfolios by giving them access to comparative market insights. This tool is a significant enhancement to the existing Nearmap Portfolio Intelligence services, specifically designed to aid insurers in evaluating their portfolio performance against broader market standards.

Better Insight for Insurers

The introduction of the Portfolio Benchmarking tool allows insurance executives and underwriting leaders to comprehensively analyze their portfolios, understanding not just their standalone performance but also how they align with market trends and norms. Historically, insurers have relied heavily on their internal loss ratios to gauge portfolio quality. However, the new tool encourages a more nuanced conversation about an agent's book, allowing underwriters to discuss various factors beyond just loss ratios. Rob Jacobson, President and CEO of Rockford Mutual Insurance Company, emphasized the importance of this review process in achieving more refined discussions.

Combining Data and AI for Enhanced Decisions

At the heart of Portfolio Benchmarking lies the AI-powered Roof Spotlight Index, which provides a score based on the condition of insured properties' roofs. This unique tool analyzes a vast dataset covering over 100 million U.S. parcels, representing approximately 88% of the nation's population. By utilizing information such as staining, ponding, and missing shingles, insurers can evaluate their portfolio quality against relevant market benchmarks, identifying trends and discrepancies with far greater accuracy.

David Tobias, Chief Product Officer at Nearmap, noted, "While carriers could previously assess their own books, the challenge has been gauging how those books stack up against market standards. Portfolio Benchmarking provides a trusted industry reference point that highlights underperformance or excess risk accumulation, paving the way for growth opportunities. This transition from merely internal assessment to leveraging external data stands to redefine strategic decision-making in underwriting and reinsurance processes."

Localized Market Benchmarking

The Portfolio Benchmarking tool excels in its ability to provide benchmark data at various geographic levels, including state, county, ZIP code, and neighborhood. These localized comparisons give PC carriers a clearer understanding of their risk distribution and portfolio quality. The assembly of residential and commercial data ensures that insurers have a comprehensive view that reflects both their unique market and broader trends.

Furthermore, agency-level benchmarking has been introduced as part of this offering. This feature enables insurers to compare their agencies against average market performance metrics. By identifying agencies that may be lagging behind market norms, insurers can provide focused support to improve risk selection and agency performance effectively.

Direct Impacts on Insurance Strategies

The key benefits of incorporating Portfolio Benchmarking into an insurer's framework are manifold. For instance, it aids in pinpointing portfolio risk concentrations, identifying geographic areas that deviate from market expectations before adverse selections can occur. Insurers will also be able to refine their reinsurance and pricing strategies with the backing of independent market evidence—a vital tool in today's competitive landscape.

A well-known super-regional carrier on the East Coast recently leveraged Nearmap’s data to negotiate a remarkable 8% reduction in their probable maximum loss (PML), resulting in significant annual savings on reinsurance premiums.

Unlocking Growth Opportunities

In addition to improving existing processes, Portfolio Benchmarking also provides insights into market segments with better property conditions, allowing insurers to target opportunities for profitable growth strategically. This is particularly critical in an ever-evolving market filled with changing conditions and consumer expectations.

By equipping underwriting, actuarial, and distribution teams with comprehensive market data, Nearmap's Portfolio Benchmarking builds a solid foundation for informed decision-making that goes beyond internal metrics. It fosters a shared understanding, bolstering the ability of insurance organizations to address challenges with confidence and precision.

For more information on Nearmap and the Portfolio Benchmarking tool, visit nearmap.com.