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Roof age is a critical factor in loss ratios across multiple perils, including wind, hail and non-weather-related risks, the data showed, while older roofs, particularly those exceeding 10 years, are prone to accelerated wear and degradation, leading to higher claims and mispriced policies.
“Yet, many insurers still rely on self-reported roof ages, leading to inaccuracies that delay quotes, compromise customer experience, and inflate losses,” ZestyAI said.
Key takeaways…
- Seventeen percent of roofs are older than reported by an average of eight years, significantly increasing the risk of mispricing and unexpected claims. Aging roofs are more susceptible to accelerated wear, leading to structural vulnerabilities and higher probabilities of damage from wind, hail, and other weather-related events. This can result in increased claims frequency and severity, amplifying financial losses for insurers.
- Sixty-three percent of homeowners uninvolved in their last roof replacement don’t know how old their roof is, further compounding these challenges.
- Younger roofs with poor conditions, such as missing shingles or structural damage, remain high-risk. Traditional risk models often fail to capture these vulnerabilities.
“However, insurers no longer have to rely on outdated, self-reported or incomplete data,” he added. “AI-driven insights offer a competitive edge, helping carriers reduce losses, improve customer experience, and build resilience in the face of increasing risks. By identifying vulnerabilities earlier, insurers can also work with homeowners to address risks before they escalate. This proactive approach not only reduces losses but also helps protect communities in the face of growing climate challenges.”
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