FairPlay AI reposted this
Founder & CEO at FairPlay | 10+ Years of Applying AI to Financial Services | Architect of $3B+ in Financing Facilities for the World's Underserved
🏠 Hey homeowners: When was the last time you checked the moss levels on your roof? If you haven’t recently, don’t worry — your insurance company’s drones probably did. Insurers today are using advanced aerial imagery to inspect every inch of your property, from aging shingles to overhanging tree limbs, all without ever setting foot on your lawn. These digital eyes in the sky are part of a broader trend toward ultra-precise risk assessment. Algorithms now process countless data points to determine premiums, promising a more personalized approach to underwriting. But with great data comes great responsibility. Connecticut’s Department of Insurance recently warned that while aerial technology might boost accuracy, it can also lead to unintended and potentially unfair consequences for homeowners. Amid an ongoing crisis in home insurance—driven by climate change, rising construction costs, and regulatory challenges in high-risk areas—advanced tech like aerial imaging and AI analysis offer insurers powerful tools to reduce costs and improve risk selection. But as states like Connecticut and New York remind us, alternative data and AI systems need to be used responsibly and within legal boundaries. With the right approach, this technology can lead to more accurate risk assessment AND fairer pricing. But to achieve that, we need to keep an eye on the roof—and an eye on the algorithms watching it.