e2Value, a forward-thinking firm known for its property valuation technology and risk management solutions, has launched its Structure Insurance Score (SIS). This analytical tool is designed to enhance risk assessment and underwriting accuracy in the home insurance market. Co-developed for over seven years with WTW and now fully owned by e2Value, SIS introduces a more granular approach to home insurance pricing, empowering small to mid-sized carriers with tools previously reserved for large-scale insurers.
“We believe this is a watershed moment for us as well as the insurance industry at large,” says Todd Rissel, CEO and co-founder of e2Value. “With the launch of SIS, this helps our clients advance beyond more traditional underwriting methods that rely on more generalized data points. SIS is a precision instrument that can redefine how risk is understood and priced in the market. It can do what make-and-model scoring did for auto insurance.”
SIS is an innovative rating mechanism that evaluates the specific structural characteristics of a home to deliver a more accurate reflection of potential reaction to various perils. Most carriers use basic property features, such as the number of bathrooms, stories, or roof age. SIS delves deeper. It analyzes up to over a hundred data points per property, enabling underwriters to detect nuanced differences in risk that would otherwise go unnoticed.
“Think of two houses of identical age, size, and replacement cost in the same ZIP code. House A is a two-story home with upper-level bathrooms and less roofing. House B is a one-story home with a simpler profile, but more roof area. The former may be more vulnerable to water and fire damage than the latter. They may receive vastly different scores because of disparities in layout, materials, or elevation. This sensitivity to structure detail provides insurers with improved segmentation, pricing accuracy, and partial loss impacts,” Rissel explains.
e2Value’s AI-powered technology is the backbone of SIS. Millions of residential policies, complete with premiums, structural data, and loss history, were compiled and analyzed to develop the SIS model. Leveraging this dataset, e2Value applied cost modeling across peril categories, such as fire, water, weather, theft, and liability. The result is a risk score that reflects replacement cost and how a structure will likely respond to a specific event. Geospatial analytics were integrated to further refine territorial risk factors all the way down to ZIP code levels.
This technology reflects e2Value’s broader mission to build intelligent, localized, and bias-resistant property risk models. It doesn’t utilize geographic averages or cost multipliers based on distant markets. Instead, the company’s tools emphasize pinpoint accuracy. This ensures that pricing reflects actual on-the-ground conditions. Their data strategy has been refined through decades of monitoring losses from hurricanes, fires, and other large-scale events, ensuring high reliability.
The impact of SIS is bound to be massive. It offers a ready-made competitive advantage for insurers, particularly small to mid-sized carriers that may lack in-house analytics teams and data. The score enables smarter segmentation, allowing carriers to identify high-risk properties that might otherwise skew loss ratios. Conversely, it recognizes homes that may warrant premium discounts.
In addition, SIS democratizes advanced risk analytics. Carriers of all sizes now have access to a subscription-based tool that allows them to make underwriting and pricing decisions with insight once reserved for only the largest insurers with proprietary tools.
The launch of the Structure Insurance Score represents a new era in home insurance. It aligns with market demands for precision and transparency. Moreover, it leverages the full power of AI and massive datasets to solve persistent challenges in property risk modeling. Ultimately, with SIS, e2Value aims to redefine how insurers underwrite homes and how they understand them.
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