Explore four ways LRO insurers can leverage generative AI to streamline Lessor’s Risk Only underwriting and grow their book of business.
Grappling with challenges posed by catastrophic weather events, economic uncertainties, and inflation, Lessor’s Risk Only (LRO) insurance stands out as a complex domain for insurers in the dynamic property insurance market. Understanding the intricate risks associated with rental office space becomes a formidable task, considering factors such as tenant types, foot traffic, and the nature of business operations within a building.
Enter Generative AI, a game-changing technology that empowers insurers to navigate these challenges and transform LRO into an avenue for business growth. Let’s delve into four ways in which this technology is enhancing LRO underwriting:
- Real-time Insights and Accuracy: Traditional reliance on historical data or incomplete client information can hinder insurers. Generative AI steps in, offering real-time insights into tenant occupancy risks by utilizing current, structured, and unstructured data.
- Swift Risk Decisions: Time-consuming research to understand a business’s risk profile becomes a thing of the past with generative AI. Insurance organizations can pre-qualify a prospect’s risk profile within seconds, ensuring efficient decision-making aligned with the insurer’s risk appetite.
- Prospecting Opportunities: LRO underwriting unveils a list of current occupants, providing insurers with opportunities to identify new prospects within a location. This valuable information can be leveraged as leads for the sales team, thereby enhancing business growth.
- Business Leads Beyond LRO: The benefits of Generative AI extend beyond LRO coverage. Insurers gain a deeper understanding of risks associated with surrounding businesses, facilitating more informed decisions across various lines of business, and optimizing overall portfolios.
In a market where insurers grapple with uncertainties and challenges, generative AI technology emerges as a strategic ally. By furnishing current and accurate information, insurers can confidently assess risks in LRO underwriting, resulting in policies that align with businesses’ actual risk exposure. The adoption of generative AI not only addresses hurdles in LRO but also positions insurers strategically to grow their entire commercial book of business.
For an in-depth exploration of how generative AI is revolutionizing LRO underwriting, check out this insightful article in Insurance Thought Leadership by our chief underwriting officer, Chris Schrenk.