Kroll – Insurtech Innovation Award 2023

1. August 2023
Property Insurance
Valuation Platform

2. 1. Underinsurance
2. Kroll Property Insurance Valuation Platform
3. About Kroll
4. Q&A
As the leading global provider of risk and financial
advisory solutions, Kroll leverages our unique
insights, data and technology to help clients stay
ahead of complex demands.
Kroll’s global team continues the firm’s nearly
100-year history of trusted expertise including in
valuations where we are the largest independent
valuation advisory firm.
Table of Contents
Who we are

3. 3
Why is underinsurance of concern for the
industry?
Averaging in the event of a loss
Valuations are cost prohibitive for SME businesses
Valuations are out of date quickly due to inflation
Insurers have a duty to report any material fact under the insurance Act and due to rapid
inflation, they are now uncertain of asset values
Brokers lose negotiating power when values are not up to date
Insurers need to assess their own level of risk

4. Why are so many assets currently underinsured?
Generally, very few properties in a portfolio are independently
valued. This is either due to capacity or cost constraints.
Inflation affects the replacement cost accuracy and increases the need
for frequent valuations.
Replacements costs for many buildings are only revalued every 3-5
years.
The resulting valuation gap has rapidly increased over the last three
years due to the strong increase in inflation.
Therefore, it is crucial that companies understand the
impact of inflation on their assets and regularly reevaluate
their portfolio to stay properly insured.

5. 5
Findings from Kroll’s Research
Our algorithm
recently valued an
SME portfolio of 225
properties in the UK
and the value of
underinsurance was
near to £500m.
In 2022, Kroll’s
research found that
67% of buildings were
underinsured by an
average of 64% and
31% of such
properties were
underinsured by more
than 50%.
The largest amount
of underinsurance
for a single building
was £8,610,000 (ECC).

6. Case study
Insights from property valuations for a global professional services firm
Property Description
Average
Underinsurance
Difference
Listed Building - Scotland 23.4% £3,838,599
6 Locations - Manufacturing 206% £10,187,500
1 Location - Industrial 32.7% £918,993
5 Locations – Industrial 24% £7,046,867
Manufacturing Portfolio 103% £15,036,585
Entertainment Venue 7% £8,610,000
Highest amount
of
underinsurance –
£18,462,398
Average
underinsurance –
67%

7. How does Kroll’s Property Insurance Valuation
Platform help remedy underinsurance?
Valuations
Clients can uncover insurance opportunities and risks with fast, cost-effective and
trusted valuations on property data, at scale, in seconds.
The platform is driven by high-quality data with global coverage and no-code technology
to provide end-to-end property insurance valuation solutions to insurance companies,
brokers, and the insured.
The algorithm alerts
clients where the data
warrants further
investigation
Our valuation
experts follow-
up to provide
insights and
deeper analysis
This enables clients
to avoid
overlooking
potentially risky
situations by
alerting outliers.

8. Coming soon
How is our technology elevating customer experience?
Cost-effective solutions
for frequent valuations
30,000 site visits
and 40 cost sources
Easy accessibility for
all types of businesses
Satellite imagery
analyses
Comprehensive view of
portfolio & centralized data
Seamless data
integration (API))
User-friendly
tools & features
Flexible &
bespoke tech
Regular updates &
tech developments
Analytics
dashboard

9. Click on the screen to watch a short demo
Clients can get valuation in just 3 steps with our
platform!

10. Client Impact: Feedback from WTW
We are extremely proud and excited to be working with Kroll and using their new Property
Insurance Valuation Platform.
Our challenge: As a business we have been looking at the issue of property valuation for some time. Our challenge was finding a partner who had
the right blend of expertise , experience and technology to complement our approach to meeting our clients’ necessities. We needed a solution that
offered an analytics-based approach backed by the capabilities and capacity of a well-established global operator, similar to ourselves.
A key factor during the selection process was the technical prowess of the Kroll platform. The combination of credible national and international data
sources and sophisticated algorithms offered reassurance to us, and ultimately our clients, that the outputs from the process were credible and
aligned to current market trends.
Why the Kroll platform?
Kroll’s solution offered us a robust online tool with the ability to access and obtain data valuation outputs in almost real time and on a cost-effective
basis. Their high-quality data with global coverage enables us to offer our clients a comprehensive portfolio view of their property risks using a simple
but effective process. Moreover, the governance behind the tool guarantees the level of confidence and trust we believe we must offer and especially
in this sensitive area where undervaluation of property could result in significant financial losses.
What benefits has the Kroll platform brought?
Now that the Property Insurance Valuation Platform is in place and being fully utilised by our risk consultants in the business, we are benefitting from
an almost immediate understanding of declared building values in today’s values and therefore better placed to advise our clients on the appropriacy
of the building insurance coverage. The simplicity and ease of use of the platform was key to integrating it into our business. We didn’t need a specific
software package to download and as it is a web-based platform . We have adapted the outputs to select what we want to report on, with the
awareness that as our business grows, we can move on the outputs to give us an alternative outlook.
– Frederick Gentile, Director of Risk Engagement

11. Client Impact: Feedback from AXA Insurance
The Property Insurance Valuation Platform brings together Kroll’s
expertise in valuations, their technical skills of risk managers (insurers),
and digital insight to deliver a market leading solution. The ability to
change unstructured data into individual or portfolio level assessments
and recommendations has brought a breadth of depth that was not
available earlier. The solution benefits the insurer, broker and more
importantly the customer.
-Douglas Barnett, Director of Customer Risk Management

12. We are preferred
valuation provider
to AIRMIC
Kroll Fixed Asset Advisory Services
12
225+
professionals
We have a team of
$1 trillion
assets for insurance
Annually we value over
10K+
engagements for 3K+ clients
In 2022, we performed
We are the Largest Independent Valuation Advisory Firm
Industry partners