Coverage Homeowners Insurance Case Study
Learn how one carrier improved retention by offering more comprehensive coverage to lower risk homes using CAPE Property Intelligence.
Most carriers are challenged to retain high-quality policies to meet their premium and profitability goals. For example, one mid-sized carrier used CAPE roof age to identify the high-quality roofs they most wanted to retain. The carrier wanted to offer exceptional coverage to policy renewals with newer roofs.
Using CAPE roof age, they increased retention by offering full replacement cost and cosmetic damage coverage to homes with newer roofs, which they found to be less likely to trigger large claims. The team automated this enhanced coverage at renewal in less than 30 days and measured positive results in less than 90 days.
The carrier also addressed renewals that had changed risk profiles over the policy period by detecting the presence of new pools, solar panels, or trampolines. The carrier reduced premium leakage by adding coverage for these previously uninsured changes to risk or capping umbrella liability limits, thus providing homeowners with suitable coverage.
This strategy increased retention of well-maintained homes and reduced premium leakage:
- Detected thousands of new pools across their book and offered more appropriate liability limits or added pool surcharges
- Rewarded insureds who had replaced their roof by offering Replacement Cost Value (RCV) and cosmetic damage endorsements at renewal
- Identified new hazards that triggered alerts for potential underinsurance upon renewal, including new solar panels
We’re now able to identify homeowners with recently replaced roofs, allowing us to offer enhanced coverage options. This has boosted our retention of profitable business and given us the insight needed to adjust coverage and liability for properties with pools. It’s a win-win for us and our customers.
VP, Home Insurance Product Development
The carrier quickly measured results:
CAPE Property Intelligence enabled this carrier to help agents retain policies and keep their best customers happy by offering better coverage to insureds. Check out the CAPE Coverage Use Case page for more on how it works.