April 8, 2024 at 04:35PM
US insurance companies are using aerial photos from drones to evaluate and deny claims, with mega-insurers like State Farm and Allstate relying on this technology. The Geospatial Insurance Consortium was established to manage the vast number of homes in America, and it utilizes AI for analysis. Concerns arise over privacy, accuracy, and potential misuse of outdated photos in policy decisions.
Based on the meeting notes, it is evident that US insurance companies are increasingly relying on aerial photography, often carried out by drones, to assess and justify denying insurance claims and dropping policies. Mega-insurers like State Farm and Allstate are reportedly using aerial photos as a cost-effective means to evaluate properties and make decisions regarding coverage. The Geospatial Insurance Consortium (GIC) has been established to address the massive task of monitoring millions of homes using aerial imagery, including post-catastrophic assessments.
Artificial intelligence also plays a significant role in GIC’s services, with the incorporation of AI-based analysis of aerial imagery provided by its partnership with Vexcel. The concern of privacy and accuracy surrounds the use of private drones for photography, as highlighted by cases such as CSAA Insurance dropping a policy based on a potentially inaccurate aerial photograph.
Instances such as Farmers Insurance using outdated or inaccurately analyzed aerial photos to drop policies have raised further concerns over the reliability and invasive nature of this approach. The lack of response from State Farm and Farmers Insurance to comment on the use of aerial photography in insurance policy assessment is also notable.
The meeting notes suggest a trend where insurance companies may be leveraging aerial photography to minimize coverage, potentially leading to increased denials and dropped policies. This approach could conflict with regulations intended to protect consumers, potentially resulting in customers being denied coverage based on potentially flawed or outdated aerial imagery. The notes also touch upon the suggestion that in-person inspections may offer more accurate and consensual assessments compared to drone-based photography.
In conclusion, the meeting notes detail a growing reliance on aerial photography by US insurance companies to assess properties, potentially leading to controversial denials and policy drops. The concerns regarding privacy, accuracy, and regulatory implications are all highlighted in the notes, presenting a complex landscape for the insurance industry’s utilization of this technology.