Analog to digital: How the transition positively impacts property inspections

We all increasingly use mobile devices for taking photos, videos and more. Since the first year that they were on the market in 2010, tablet sales have grown from 18 million to approximately 215 million in 2014. Phone sales have gone from 50 million units in 2010 to 193 million in 2014. Meanwhile, in the United States, digital camera sales are down from a peak of 44 million digital cameras units in 2010 to 11 million in 2014. Throughout the past two decades, property inspections have relied on digital cameras as part of the process–a process that then requires cumbersome and time consuming file uploads and manual labeling. Digital inspection platforms, in conjunction with devices such as iPads, not only accelerate an effective capture of various media, but streamline additional entry types–videos, diagrams, forms and more. As FTC approvals arrive for the use of drones in our industry, those drones will produce photos and videos that is simply another "entry type" that will be archived alongside other inspection entries. 

Digital inspection solutions do not create the end product though–particularly in the case of claims related work. In those situations, an estimate is still often necessary to determine the loss and enable completion of the claim. But, better inspection solutions do lead to better estimates. More entry types and better documentation result in more detail, which eventually serves the benefit of those writing estimates. Increasingly inspection software also enables the division of the inspection and estimating tasks; gone are the days where an inspector's notes on a piece of graph paper are only legible to the author. The digital inspection output can be reviewed by a manager, administrator or altogether separate contact who can use the "notes" to produce an estimate, denial or other requirements for claim completion.

Better Inspections Lead to Better Data

An "analog" inspection process produces limited data, both for proactive and reactive inspections. An industry formed largely around "big data" is failing to capture key productivity or building material information at the point of inspection.

However, a digital inspection platform provides limitless data potential. On the claims side, it's possible to learn when, where, how and how long inspections are taking. The result is reduced potential of errors, inconsistencies or even fraudulent practices. On the underwriting side, inspection data naturally fuels the appraisal and actuarial process. That leads to better replacement cost calculations as well as the opportunity to gather and share other vital property data.

Better Inspections Lead to Better Customer Engagement

The most sensitive period during a claim is the time between the first inspection and the creation of the estimate. Re-opens, supplement requests and other various delays are not only inconvenient but generally lead to a negative claims experience and customer churn. A recent IBM study described insurers spending up to seven times more acquiring a new customer than retaining an old one.

Inspection software today increasingly presents a standard, transparent output that can often be shared directly with the policyholder. As a claims inspector moves from one property to the next, especially during busy times, that output can minimize the policyholder's angst. Additionally, it can be shared with the inspector's colleagues who can quickly and easily take that output and utilize it to create supporting documentation, including an estimate. Again, the inspection and estimate are not at odds with each other. When executed properly, the inspection and estimate co-exist to satisfy increasing customer demands.

As digital and mobile inspections platforms advance, they will add value to early adopters who elect to embrace them and modify their work streams accordingly. At the end of the day, these platforms represent a step-change improvement for the industry, helping return it to a position that once again allows customers to experience that trusting relationship they knew in the past.

David Cockrel is the co-founder of Spex, a property inspection platform for the insurance and construction industries, and former insurance adjuster/trainer/manager.