US-based data solutions company Confianza has announced that its property replacement cost estimator has been selected by Coterie Insurance, an insurtech revolutionising small business insurance.
Leveraging transparent model parameters, the solution will be integrated with Coterie’s new commercial property replacement cost solution.
The new integrated platform will help in providing quote prefill for digital business owners’ (BOP) policy applications.
The new effort will allow Coterie to enhance the speed and accuracy required for calculating commercial property valuations to cater to the needs of its customers across the globe.
Coterie chief data officer Paul Bessire said: “Confianza’s scores are helping Coterie avoid property undervaluations and premium leakage through the use of their transparent model, quarterly rating factor evaluation, and refresh frequency.”
Confianza explained that the existing market valuations for commercial properties are often difficult to calculate.
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Such difficulties together contribute as a major factor that enables different businesses and property-use types to provide significantly varying costs of repair, some of which are mandated by local and state governments.
Confianza said its replacement cost calculation has been designed after taking all these factors and issues into consideration.
Confianza chief data officer John Petricelli said: “Traditional factors and historical methods are no longer sufficient to calculate a good representation of replacement costs.
“Confianza’s highly transparent, flexible model includes several inflation variables, such as supply chain pressures stressing the availability and cost of common materials. The resulting prices have materially affected the efficacy of historical methods.”
In July, Coterie Insurance entered an agreement to utilise ZestyAI’s platform for providing timely property risk insights to its customers across the US.