Hometrack Opens Database to Insurers for First Time to Power Fairer Acceptance Rates

Hometrack, the leading provider of automated property valuations has revealed that 67,000 homes have switched to rental properties over the past 12 months – highlighting how many homeowners may be missing out on essential insurance.

With rents continuing to register double-digit growth for the 15th month in a row and the average UK rent now standing at £1,126 per month, a cohort of homeowners may be deciding to switch their primary residence to reduce mortgage payments or increase their income.

However, many of these homeowners may not be aware that they’re potentially underinsured as a result of this switch – with underinsurance a key cause of complaints in home insurance according to the Financial Ombudsman Service, and only 79% of domestic property claims accepted in 2020 and 2021 according to ABI data.

To support the insurance sector ahead of the introduction of the new Consumer Duty at the end of this month, Hometrack has now opened up its Property Listings Data to insurance underwriters. This will enable them to review home policies against the most comprehensive property data set available on the market.

With five years of UPRN (Unique Property Reference Number) data available, insurance firms can use the property data to significantly improve the accuracy of due diligence of their back book and make more accurate risk assessments. For example, at the point a policy is taken out, insurers can protect customers by checking property sale history and other house price data within Hometrack’s Property Listings Data for discrepancies.

The same data also allows insurers to proactively reach out through their customer services teams if a property changes status without the customer notifying them.

UPRN-linked real estate data is relevant to a wide range of job roles within the insurance sector, from actuaries and underwriters; risk, audit and compliance teams through to sales and marketing.

Ross Allan, Director of Property Data Solutions at Hometrack said:
“At Hometrack, we firmly believe in the power of data-led decision making. When it comes to the insurance sector, our Property Listings Data is a no-brainer and can reduce barriers around claim acceptance and boost customer conversion for insurance firms.

“The FCA’s Consumer Duty is also front of mind for many insurers. Integrating Hometrack’s Property Listings Data will also help deliver fairer outcomes for consumers and reduce the time spent dealing with customer complaints.”