Property Losses Topped $68 Billion in 2020 as Extreme Events and Pandemic Drove Insurance Claims, Xactware’s 2020 Property Report Found

Rhea-AI Summary

Xactware, a Verisk (Nasdaq: VRSK) business, reported significant shifts in property claims processing due to the COVID-19 pandemic and natural disasters in 2020. The report indicates a total of 6.97 million claims resulting in over $68 billion in property losses. Virtual claim inspections surged by 228%, with over 140,000 claims processed digitally. The report provides insights into property insurance trends, reconstruction cost changes, and common material prices, emphasizing the effectiveness of digital tools in adaptation during the pandemic.

Positive

• Surge in virtual claims processing by 228%, with over 140,000 claims handled digitally.
• Total property claims reached 6.97 million, indicating strong demand for insurance services.
• Innovative use of technology allowed insurers to adapt quickly to pandemic-related challenges.

Negative

• Total property losses exceeded $68 billion, reflecting significant market challenges.

Insurers, contractors, consumers used digital and virtual Verisk tools to process a record 140,000 claims as lockdown gripped the nation

LEHI, UTAH, June 30, 2021 (GLOBE NEWSWIRE) -- The global pandemic and damage from winds and hurricanes had a profound impact on property claims and pricing trends throughout 2020, according to Xactware’s recently released 2020 Property Report for the United States. The volume of property estimates processed by Xactware, a Verisk (Nasdaq: VRSK) business, peaked in August with 883,128 claims, totaling $9.44 billion, the report shows.

Catastrophic events set a record in the United States in 2020, with 19 events causing at least $1 billion in direct insured losses, PCS, a Verisk business, reported. Hurricane Laura, the Midwest Derecho and wildfires throughout the western states were the cause of the surge in claims activity in what was an already challenging year. There were 6.97 million claims in 2020 for a total of more than $68 billion in property losses, according to the report.

Years of research and development enabled insurers, property and restoration professionals to adapt to lockdowns and serve customers with digital tools.

At the onset of the COVID-19 pandemic, many insurers had to quickly establish new remote workflows to continue handling claims. This led to a tremendous spike in the number of virtual claim inspections. The report shows that more than 140,000 claims processed by Xactware in 2020 had a virtual aspect, whether live or on-demand or collaborating with the policyholder and service providers—a 228 percent increase from the previous year.

“We’re proud to have had the technology available to help the property industry rapidly adapt to meet the needs of customers during the global pandemic, while ensuring the safety of staff, vendors and policyholders,” said Mike Fulton, president of Verisk’s Xactware. “Without visiting a customer’s home or business, insurance adjusters can communicate with customers via video chat, access estimation and other relevant data, and process claims rapidly. When catastrophe struck, the industry was ready to support their customers at the hour of their greatest need. As a result, these digital tools and solutions have become an integral part of how work gets done.”

Xactware’s 2020 Property Report examines data from millions of claims in the U.S. and provides insight into property insurance trends leading into 2020. The property report also includes findings on these key areas:

• Total volume and value of property estimates
• Rate changes for reconstruction costs by state
• Trends for common building materials such as lumber, drywall, and roofing
• Cost of personal protective equipment
• Industry benchmarks for claim turnaround times
  
  

The property report is digital and interactive and available for instant access. For more information, visit Xactware.com.

Xactware Solutions provides computer software solutions for professionals involved in estimating all phases of building and repair. Thanks to a longstanding commitment to invest in research and development, Xactware solutions are used by 22 of the top 25 property insurance companies in the U.S. and all of the top 10 Canadian insurers.

About Xactware
Xactware specializes in technologies for the property insurance, remodeling, restoration, and mortgage and lending industries. Xactware’s tools provide claims estimating, contents replacement, claims management, and property maintenance solutions for desktop, mobile, and online platforms. Xactware’s services include repair cost research and reports, aerial imagery, and real-time business intelligence. Xactware has been providing cloud services for customers since 1995. Xactware is a Verisk (Nasdaq:VRSK) business. For more information about Xactware’s solutions, contact Xactware at 1-800-424-9228 or Xactware.com.

Media Contact
Michelle Pantina
551-500-7327
michelle.pantina@verisk.com

FAQ

What does the 2020 Property Report by Xactware reveal about claims processed by Verisk?

The report shows that Xactware processed over 6.97 million claims, totaling more than $68 billion in property losses due to various catastrophic events.

How did COVID-19 impact claims processing for Verisk?

The pandemic led to a significant increase in virtual claims processing, with a 228% rise in claims handled through digital tools, exceeding 140,000 claims.

What were the key findings from Xactware's 2020 Property Report?

Key findings include total volume and value of property estimates, rate changes by state, and trends for building materials, alongside the costs of personal protective equipment.

What role did technology play in Xactware's response to the pandemic?

Xactware leveraged its digital tools to facilitate remote workflows, enabling efficient claims processing without physical site visits.

What is the significance of the 228% increase in virtual claims for VRSK shareholders?

This increase indicates a strong adaptation to market demands, potentially enhancing revenue opportunities for Verisk in the property insurance sector.