Bridging The Carrier-Restoration Knowledge Divide with Technology

Insurance carriers and restoration teams face a cascade of challenges.

The increasing frequency and severity of climate-induced catastrophes, such as Hurricanes Helene and Milton, have pushed some carriers out of high-risk areas, which has played a part in the 17.4% increase of home insurance premiums from the first half of 2024 compared with 2023.

For carriers, it intensifies the challenge of sustaining profitable operations in high-risk regions. Rising premiums push more policyholders to downgrade or forego coverage altogether, leading to revenue losses and increased exposure to underinsured properties.

At the same time, restoration contractors are facing skilled labor shortages. Older contractors are walking encyclopedias of knowledge and experience, but they’re retiring faster than incoming talent can fill vacancies. This not only creates a labor imbalance but also a gap in technical know-how and expertise that has been built over decades. The shortage is particularly pronounced in more specialized roles such as roofing, electrical work, and HVAC, which are often in critical need of repair in the aftermath of a disaster.

The confluence of labor shortages and the fragility of carriers is having a ripple effect on homeownership. For carriers, these delays translate to higher claims costs as issues like mold and structural damage worsen over time. Addressing these issues calls for a concerted effort to bridge the knowledge gap between carriers and contractors, leveraging technological advancements to enhance collaboration and efficiency.

Reimagining the Carrier-Restoration Partnership With Tech

The knowledge gap, combined with fragmented communication between carriers and contractors, creates numerous points for potential breakdowns. Carriers and contractors often rely on different systems, each housing critical pieces of information—from claim details and repair estimates to timelines and cost approvals.

As a result, communication is frequently delayed or incomplete, leading to misunderstandings about what repairs are necessary, expected costs, and uncertainty surrounding who holds responsibility for each part of the process. This makes it difficult to maintain a clear picture of each claim, resulting in repeated follow-ups, misaligned expectations, and prolonged claim resolutions. A shared, centralized source of truth is key to provide all parties with up-to-date data to improve coordination, reduce delays, and streamline the overall claims process.

Fortunately, emerging technology offers solutions to bridging the gap like automated post-disaster documentation, 3D imaging and AI-powered damage assessment. These innovations help streamline an arduous claims process and foster a more cohesive relationship between insurers and restoration teams.

1. 3D imaging technology allows carriers and restoration teams to create digital twins of damaged homes. These digital replicas enable both parties to visualize a property from multiple viewpoints, gaining a more complete picture of the damage. By visualizing the structure, contractors can develop more accurate repair plans, and carriers can process claims with greater accuracy and speed.
2. AI-driven assessment tools further enhance the claims process by quickly analyzing images to assess damages and reduce the time needed to create an estimate. Like automated documentation tools, purpose-built AI tools can identify nuances in a damaged home—such as structural issues. It can also predict repair costs, reducing the time required for preliminary evaluations and allowing carriers to make faster claims decisions.
3. Drone and satellite imagery provide additional support by enabling rapid property assessments, particularly in hard-to-reach or unsafe areas after a disaster. Drones offer a safer, more efficient way to document damage in real time, reducing the risk for on-site inspectors, adjusters, and other personnel. Satellite imagery is also valuable, providing detailed aerial views of larger affected areas, often blocks or entire zip codes, allowing carriers to prioritize claims based on severity. However, satellite imagery does have an Achilles heel—its imagery quickly becomes outdated, especially in the immediate aftermath of a disaster, and the situation continues to unfold.
4. Automated documentation tools enable clear and consistent documentation of a damaged home. This includes detailed images for accurate assessments, as well as precise measurements that document the dimensions of walls, doorways, ceiling, outlet and fixture locations, and other structural elements. The level of documentation helps eliminate guesswork, resulting in more accurate repair estimates that allow carriers and contractors to align on repair needs and costs.

A Single Source of Truth

While these technologies offer unprecedented efficiency, the data that comes from them are virtually worthless if it’s siloed, hard to access or incomplete. A centralized repository of accurate, accessible, easy-to-understand data is needed for carriers and restoration teams to get the most value out of data.

For carriers, a single source of truth enables more efficient, confident claims processing, even when multiple teams are involved. For contractors, it provides access to critical information that helps them deliver timely repairs that meet insurance standards. A shared data environment improves collaboration and reimagines the relationship between carriers and restoration teams – even as new talent enters the workforce.

Even with a unified data repository, effective management is essential for success. Prioritizing data quality and security is crucial, especially as states implement strict privacy laws that impose hefty penalties for mishandling sensitive information.

The relationship between carriers and restoration contractors is increasingly strained by a mix of challenges like natural disasters, escalating home insurance premiums, and contractor labor shortages, and a widening knowledge gap. By leveraging new technologies to bridge this gap, this relationship can see improved collaboration, streamlined claims and enhanced trust with homeowners. Emphasizing this tech-driven approach ensures timely, reliable support in times of crisis, paving the way for a more resilient carrier-restoration contractor partnership.

Dumas is the director for insurance strategy with DocuSketch. She has nearly 20 years of experience. She previously led insurance strategy at Matterport, served as principal consultant for Transparent Claims Consulting and was a district manager at Contractor Connection.