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.

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.