The connection between home inspections and securing reinsurance is crucial for insurance carriers. In this interview with AAIS Partner, Chrp Technologies, we delve into the pivotal role of maintaining a high-quality book of business for insurers seeking reinsurance. Micah Kalisch, Founder and CEO of Chrp Technologies, elucidates how adhering to inspection protocols aligned with stringent underwriting standards not only safeguards insurers against potential risks, but also enhances their appeal to reinsurers. He also discusses how Chrp can support underwriters throughout this process.

The Relationship Between Reinsurance and Home Inspections

According to Kalisch, the relationship between reinsurance and home inspections boils down to the quality of the book of business that the insurance carrier maintains, as reinsurers always seek a healthy book. “If you have an inspection program within your underwriting guidelines, you are more apt to have a healthy book of business,” he explained. “This means that you have looked at these risks, assessed them, and made sure that they are acceptable for your own guidelines, which then helps reinsurance carriers feel more comfortable with writing your business.”

Biggest Oversight by Insurance Companies Seeking Reinsurance

Kalisch believes the biggest oversight for insurance carriers seeking reinsurance is not considering potential risks in their book. "They approach it with the mindset that the only concern is CAT (catastrophe) claims," he said. "They think that's the only thing reinsurance covers; however, they don't realize that there is a myriad of other claims that can impact how reinsurance carriers look at them." For example, if many roofs in an insurer’s book of business are beyond their age guidelines or in poor condition, Kalisch warns they will be the first affected by a hurricane, even a small one, as large hurricanes don’t impact new roofs the same way they do old ones. "If you are doing inspections [and] maintaining a healthy book of business, when reinsurance companies look at you, they will see your ability to maintain a small storm and maybe will have to pay for a larger one. This provides a level of comfort when they assess your book and the risk they are taking on."

About Chrp Technologies

Chrp Technologies is an AI-based loss prevention program deeply rooted in construction and underwriting expertise. Developed using claims data, 20 years of underwriting data, and on-site experience observing the cause and effect of potential losses, it features proprietary AI designed to identify and mitigate risks for carriers. This scalable solution enhances the profitability, expertise, and efficiency of underwriting departments, according to Kalisch.

How AAIS Members Can Leverage Chrp Solutions

The easiest way to benefit from Chrp is to reach out and schedule a demo. “The way this product is set up is to help underwriters,” Kalisch stated. “It’s very easy to use and get into the process. Start with basic loss assessments; find things that you're missing on a regular basis that traditional inspections are not doing for you. Give your homeowners and policyholders the option to be able to conduct their own [inspections] in a safe environment and use the analysis that comes back from years of industry experience to be able to assess the quality of the business.”

Learn more at chrptech.com.

To view the full interview with Micah Kalisch, click on the video above.