How insurance companies are using property APIs to transform risk assessment

Alex Wilkinson

CEO of Houski

2024-05-18

The Canadian insurance industry faces a critical data challenge that's costing billions annually. Traditional risk assessment methods rely on incomplete property information, outdated assessment data, and broad geographic assumptions that fail to capture true risk profiles. The result: mispriced policies, preventable claims, and customer frustration with inaccurate coverage decisions.

The scope of the problem is significant: Industry analysis shows that traditional property risk assessment captures only 30-40% of actual risk variation, leading to substantial underwriting losses and customer dissatisfaction.

However, 2025 has marked a turning point. Progressive insurers are leveraging comprehensive property data APIs to transform their operations, achieving measurable improvements in risk selection, pricing accuracy, and customer experience. Early adopters report significant reductions in loss ratios and substantial improvements in operational efficiency.

This transformation isn't optional—it's becoming a competitive necessity as customer expectations evolve and regulatory requirements increase.

The traditional approach is fundamentally broken

Most insurance companies still rely on an outdated approach to property data:

• Patchwork of incomplete databases requiring manual reconciliation
• Customer self-reporting of critical property characteristics
• Outdated zone-based risk models rather than property-specific assessment
• Infrequent updates that miss recent property changes
• Limited data sharing between departments (claims doesn't talk to underwriting)
• Basic property characteristics with no context (square footage without quality ratings)

The consequences are expensive:

• Underpriced policies for high-risk properties
• Overpriced policies driving good customers to competitors
• Claims for risks that could have been identified and mitigated
• Inefficient inspection processes targeting the wrong properties
• Customer frustration during applications and claims

The API-driven transformation

Progressive insurers are leveraging comprehensive property APIs to reinvent their approach. Here's how they're using Houski's property data API to gain a competitive edge:

1. Accurate, property-specific risk assessment

Instead of broad postal code classifications, leading insurers now assess risk at the individual property level:

// Example of property-specific risk assessment with Houski's API
const assessPropertyRisk = async (address, city, province) => {
  const url = new URL('https://api.houski.ca/properties');
  url.searchParams.set('api_key', 'YOUR_API_KEY');
  url.searchParams.set('address', address);
  url.searchParams.set('city', city);
  url.searchParams.set('province_abbreviation', province);
  
  // Select risk-relevant fields
  url.searchParams.set('select', [
    'construction_year',
    'roof_material',
    'roof_material_install_year',
    'foundation_type',
    'heating_type_first',
    'plumbing_type',
    'plumbing_pipe_material',
    'score_flood',
    'score_fire',
    'property_type',
    'interior_sq_m',
    'land_area_sq_m'
  ].join(','));
  
  const response = await fetch(url);
  const data = await response.json();
  
  return data.data[0]; // Return the property data
}

This granular approach allows insurers to:

• Identify specific property vulnerabilities
• Price policies based on actual rather than assumed characteristics
• Target risk mitigation recommendations to specific properties
• Prioritize inspection resources more effectively
• Track risk changes over time at the property level

2. Claims prediction and prevention

Claims data combined with property characteristics creates powerful predictive models:

• Identify properties with aging systems before they fail
• Target preventative maintenance recommendations to high-risk customers
• Prioritize inspection resources based on predicted claim likelihood
• Monitor neighborhood trends impacting multiple policies
• Detect fraud patterns more effectively

Property data analysis can reveal important correlations between building characteristics and claim patterns, enabling insurers to:

• Adjust premiums appropriately for higher-risk property features
• Offer targeted mitigation incentives to reduce claim frequency
• Prevent significant claim costs through proactive risk management

3. Customer experience enhancement

Better property data transforms the customer experience:

• Pre-filled applications reducing friction and errors
• More accurate initial quotes requiring fewer adjustments
• Faster claims processing with property details already on file
• Proactive risk alerts based on property and neighborhood changes
• Personalized policy recommendations based on actual property characteristics

Pre-populated property data can significantly reduce application abandonment by eliminating tedious questions customers often struggle to answer accurately.

4. Automated underwriting efficiency

The most significant transformation happens in underwriting:

• Automated validation of customer-provided information
• Instant flag of high-risk property characteristics
• Straight-through processing for qualifying properties
• AI-powered anomaly detection for inspection triggers
• Continuous risk monitoring throughout policy lifecycle

Rather than processing every application manually, underwriters focus their expertise on truly complex cases while straightforward policies flow through automatically.

Implementation: Easier than you might think

The good news? Implementing a property data API is remarkably straightforward:

1. Start with a focused use case

Begin with a clear problem to solve—whether that's application pre-fill, underwriting validation, or claims risk assessment.

2. Streamlined API integration

Modern property data APIs are designed for rapid implementation:

// Example: Basic property risk assessment integration
const getPropertyRiskData = async (address, city, province) => {
  const url = new URL('https://api.houski.ca/properties');
  url.searchParams.set('api_key', 'YOUR_API_KEY');
  url.searchParams.set('address', address);
  url.searchParams.set('city', city);
  url.searchParams.set('province_abbreviation', province);
  
  // Select insurance-relevant data points
  url.searchParams.set('select', [
    'construction_year', 'foundation_type', 'heating_type_first',
    'roof_material', 'roof_material_install_year', 'property_type',
    'interior_sq_m', 'assessment_value', 'latitude', 'longitude'
  ].join(','));
  
  try {
    const response = await fetch(url);
    const data = await response.json();
    
    if (data.data && data.data.length > 0) {
      return analyzeInsuranceRisk(data.data[0]);
    }
    return { error: 'Property not found' };
  } catch (error) {
    return { error: 'API request failed', details: error.message };
  }
};

const analyzeInsuranceRisk = (property) => {
  const ageRisk = calculateAgeRisk(property.construction_year);
  const materialRisk = assessMaterialRisk(property.foundation_type, property.roof_material);
  const locationRisk = assessLocationRisk(property.latitude, property.longitude);
  
  return {
    overall_risk_score: (ageRisk + materialRisk + locationRisk) / 3,
    risk_factors: {
      age: ageRisk,
      materials: materialRisk,
      location: locationRisk
    },
    recommendations: generateRiskRecommendations(property)
  };
};

Integration advantages:

• RESTful design with intuitive endpoint structure
• JSON responses that integrate easily with modern systems
• Comprehensive field selection for precise data requirements
• Built-in error handling and status reporting
• Scalable architecture supporting high-volume requests

3. Validate with A/B testing

Run your current process alongside API-enhanced versions to measure concrete improvements.

4. Expand gradually

As benefits become clear, expand implementation across additional processes and departments.

5. Build competitive advantage

Use the time and resource savings to develop truly differentiating customer experiences.

The implementation roadmap

A typical implementation follows these stages:

From data to differentiation

The most forward-thinking insurers aren't just using property data to fix existing problems—they're creating entirely new capabilities:

• Proactive policyholder engagement
  Notifying customers when neighborhood risk factors change or when property maintenance might be needed.

• Dynamic policy adaptation
  Adjusting coverage and pricing as property characteristics change over time.

• Ecosystem integration
  Connecting with smart home devices, weather data, and local services to create comprehensive risk management solutions.

• Embedded insurance opportunities
  Using property data to enable seamless insurance offerings within real estate and home service platforms.

The competitive imperative

Insurance is rapidly dividing into two tiers:

1. Data-driven companies with superior risk assessment and customer experience
2. Traditional players struggling with inaccurate pricing and higher claims

The gap between these tiers is widening every day. As one insurance executive told us: "Companies that aren't investing in property data now won't be relevant in five years."

Getting started with Houski

If you're ready to transform your insurance operations with comprehensive property data:

1. Explore our API capabilities
   Review our documentation to understand the data available.

2. Identify your highest-value use case
   Where would better property data most impact your business today?

3. Start a proof-of-concept
   Our team can help you design and implement a focused test case.

4. Measure the results
   Track improvements in key metrics like loss ratio, operational efficiency, and customer satisfaction.

The future of insurance belongs to companies making decisions based on comprehensive, accurate property data. The only question is whether your company will lead that future or be left behind by it.

Ready to transform your approach to property risk? Contact our team to discuss how Houski's property data API can give your insurance company the competitive edge.