Insurance
Solutions
How we provide value
Speed, accuracy, and validation are key to underwrite a new and assess a damaged structure. Hosta Labs’ Hopper A.I. creates a deeper understanding of structures than a human expert can in a comparable timeframe, it is highly repeatable, and cost-efficient. We will augment claim pricing for claim managers, leading to an annual saving of $1.5bn per year for the US P&C Insurance market while enhancing their customer satisfaction due to faster executed claims. We will augment risk and replacement value assessment for underwriters and inspectors significantly contributing to loss prevention and accurate premiums. Again, enhancing customer satisfaction through enhancing their feeling of safety when structures fail.
Where Insurance Needs help
60% of properties in the US are underinsured
Economic pressure raising as low-income insurers receive policy waivers due to COVID but keep being insured. No insights into customer’s homes when underwriting a property – one size fits all approach (web site template). Some carriers may end up paying out more for a claim than the premium would have justified, resulting in lost profit on the policy
These claims could have been prevented. Homeowner Insurance is commoditized based on industry standards and norms, rather than accurate inspections and recommendations. Yet, majority of claims are due to pipe leakage and electrical failures (not hurricanes, earthquakes or similar)
$60B of claims result from unknown interior issues
Administrative Costs For pricing a claim add up to over 3.5bn
Once claim occurs, adjuster or restoration company travels to the customer to assess the claim – mainly with pen and paper to manually create reports for decision making on claim values – inconsistency across assessments based on approach (20 k claims per month, Min. adjuster assessment cost of $300 per incident)
Our Solution
Hosta Labs’ Structural assessment solution, Hopper A.I., goes beyond just object detection and measurements. Our A.I. exceeds human assessment by consistently identifying and measuring objects and structures with greater detail. No matter how often the same structure is assessed, the outcome will be the same. We create a bill of materials and CAD models for every space. We fully augment risk, claim pricing, and replacement value detection from simple images, videos, or 3D scans.
Unlike conventional A.I. solutions that don’t provide spatial relationships, dimensions and material properties, we take unstructured data and place it in a real-world context to provide a built environment that is detailed and accurate. Hosta’s co-founder and CEO, Rachelle Villalon, is the inventor of Hopper’s patent-pending algorithm. She is as an MIT Ph.D. in Computer Vision and Architecture. Our product is named after Grace Hopper, a female force in computer science and a thought leader that enabled modern-based computer languages.
Value Drivers
ACCURACY
According to our customers, a structure assessed by 2 different people will reveal two different outcomes that differ beyond 10% in replacement values or valuation. We are providing a single source of truth with detail than can be captured at accuracy level by human experts today .
SPEED
Current turn around times: Commercial Underwriting: several hours to a week to determine risks Residential Underwriting (value beyond 750k): risks and values are never fully captured Residential Claim assessment: especially for larger claims up to several days
Reduced Costs
Current costs associated with: Underwriting: xx% of claims could be prevented when detected prior to underwriting and mitigated Claims: average cost associated with claim pricing $350 per claim – with an average of 30,000 claims per month across the insurance industry – costs are $4.8M
