P&C Insurers Face New Risks Faster Than Business Practices Adapt

A report by Nearmap, ‘Weathering the Storm Ahead: Leveraging Location Intelligence to Transform U.S. P&C Underwriting and Claims,’ reveals that U.S. property and casualty (P&C) insurers are struggling to keep up with next-generation risks such as severe weather, fraud, and inaccurate property assessments. Industry-wide challenges include managing large data volumes and adopting AI-driven technologies.

Key findings show that 69% of professionals cite severe weather as a major disruptor, while 67% agree AI could help reduce fraudulent claims. AI-derived insights from aerial imagery are identified as pivotal in transforming underwriting, claims, and risk management. Despite the potential, only a small fraction of insurers use aerial imagery comprehensively, leaving a competitive advantage untapped.

The report also highlights how insurers can leverage technology to improve operational efficiency, enhance risk profiling, and streamline claims. However, adoption lags; only one in six insurers have embraced advanced AI, despite three in five agreeing it’s the future of P&C. The industry is urged to accelerate its transition to tech-forward solutions to meet emerging risks and secure ROI.