From “technocracy.news”
Using drones, satellites, and AI-powered image analysis, insurers now catalog 99% of residential and commercial properties in America. The data is harvested by “insurtech” contractors, processed through algorithmic risk models, and used to cancel policies at will. The technology has outpaced every consumer protection.
Does this feel like a reverse lottery? A certain percentage of customers will be blindly terminated each year without explanation. The algorithms can pick any pattern out of your data and then use it against you. For instance, left-handed smokers with oversized yards who paint their homes blue could get the ax if it is determined that their claims are too high. ⁃ Patrick Wood, Editor.
A homeowner has hit out at her insurance company after she was told her roof needed pricey repairs or risk losing her coverage completely.
The shocking notice came after State Farm reportedly spotted the issue using an AI-powered drone without the homeowner’s knowledge.
Now, experts are claiming that the company was incorrect in its updated satellite imaging.
Linda Bennett, who has lived in Santa Ana, California, for decades, was told she would lose her coverage if she didn’t pay $20,000 for repairs she wasn’t convinced she needed.
Before the incident, Bennett had never had an issue with her insurance company.
She received a letter from her company that said her roof was leaking and needed repairs.
Bennett recalled the initial surprise of receiving the letter.
“My initial thought was it’s a mistake,” she said.
“They’ve got the wrong house because there’s nothing wrong with my roof.
“There’s no water damage to my house, inside or out. My roof has not leaked at all.”
Bennett added that no one knocked on her door and no inspector climbed onto her roof, which led to her drone theory.
She has now been left scrambling to find another company to insure her home.
Drone Blunder?
According to industry experts, companies are using drone technology and taking images of homes to help decide whether to renew their policies.
Amy Bach with United Policyholders said that this technology can draw incorrect conclusions.
“A lot of the technology is being sold to insurers with this promise, that if you use our tool, if you use our drone images, you’re going to do a better job at picking the good risks and getting rid of the bad risks. That’s what insurers are doing,” she said.
“We’re still finding some situations where the drone and the AI makes a conclusion that’s wrong about what it sees.
“We’re seeing an overreaction by insurance companies to data that they’re now getting through new technology.
“We’re seeing them drop homes that they’ve been insuring for decades – and nothing’s changed on the homeowner’s part.”
Bach urged homeowners who receive similar notices to contact their insurance companies immediately.