Underwriting Homeowners Insurance Case Study

Learn how one carrier measured positive results from implementing CAPE property intelligence in just days.

Many carriers use CAPE to deliver measurable underwriting impact within days or weeks.

For example, one Midwest carrier began applying loss-predictive CAPE property attributes to fine-tune their inspection prioritization program.

This carrier uses CAPE to flag inspections for new business policies—reserving a full inspection for the most concerning properties while fast-tracking homes deemed unlikely to pose issues. This proven approach significantly increased the carrier’s inspection action rate while keeping their overall inspection budget flat.

This approach saved the carrier both time and money:

  • The carrier’s underwriters spent less time administering unnecessary inspections—time savings they could apply to underwriting more complex or borderline risks.
  • Action rates increased because inspectors more often found issues that did not fit carrier underwriting guidelines and directly led to losses, like damaged roofs or overhanging trees.
  • Fast-tracking the best risks through underwriting improved the customer experience for agents and policyholders.

We saw immediate results when implementing CAPE to improve our inspection program. We were able to get eyes on the properties that were most likely to have issues and quickly pass through the rest.

Director of Underwriting, Midwest Carrier

In this case, the carrier implemented a more effective inspection process in a matter of weeks. The carrier also accelerated its straight-through processing initiative for certain properties that met their underwriting criteria.

The insurer also saw additional, longer-term secondary benefits from this implementation—by identifying and remediating higher-risk policies upfront, the carrier is better able to control unexpected losses downstream, which has a positive effect on the quality of their book and their loss ratio over time.

In pursuing this implementation, this homeowners carrier did not require a dedicated innovation team or outside consultants to improve their underwriting results. Instead, the homeowners team worked with CAPE to deliver a one-two punch:

First, manage underwriting-related expenses by holding the inspection budget flat while doubling the inspection program action rate from 30% to over 60%
Then, fast-track homes without proven risk factors to accelerate straight-through processing

CAPE Property Intelligence enabled this carrier to improve underwriting results and enhance the customer experience within weeks.

Interested in learning about additional ways to implement CAPE Property Intelligence to improve underwriting processes? Visit our Underwriting Use Case page for a full overview.