P&C Insurance Embraces Advanced Technology to Tackle Weather and Cyber Risks

Emerging risks such as extreme weather events and cybersecurity threats are pressuring the U.S. property and casualty (P&C) insurance industry to adopt advanced technologies. A recent report by Nearmap reveals that 69% of P&C professionals cite severe weather as a significant disruption, with recent hurricanes Helene and Milton causing billions in damages.

The report highlights the growing reliance on aerial imagery, used by 90% of insurers, to enhance risk assessment, underwriting, and claims processing. Despite its benefits, such as increased accuracy and faster policy decisions, privacy concerns remain a challenge for 59% of insurance professionals. AI-derived insights from aerial imagery show promise, but only 18% of insurers have integrated these tools into their operations.

In addition to climate risks, the industry faces other challenges like cybersecurity and rising property costs. Economic pressures and legacy IT systems further complicate adaptation. However, experts stress the potential for technology to improve risk management and lower costs for policyholders, shifting higher premiums to high-risk properties and creating more precise policy terms.

This technological transformation represents a pivotal opportunity for insurers to not only manage risks more effectively but also improve customer satisfaction and retention through enhanced data-driven decision-making.