Boost Commercial Property Underwriting Profitability via Property Data

13 August 2025 / 2 min read

Underinsurance in commercial property has been a persistent issue in recent years. Almost half (46%) of UK commercial properties are estimated to be underinsured, and the challenge for insurers, managing general agents (MGAs), and brokers alike is to address the problem in a cost- and-time-effective way. With high-quality, complete, and easily accessible data, underwriters are better able to provide accurate risk assessments both economically and at scale.

In Insurance POST’s latest webinar, Nutan Rajguru, Head of Analytics at Verisk, joined fellow insurance industry experts to discuss how commercial property insurers can use data to make pricing more accurate.

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The power data can bring

The demand for data within insurance organisations has been steadily increasing in recent years, with a culture shift from insisting on costly surveyor visits to a more data-driven approach that still brings detailed insights.

Verisk’s Rajguru said: “Recently we’ve seen a big uptick in commercial lines insurers speaking to us about our data and analytics solutions.”

She noted however that challenges can arise over a lack of detailed property data collected by insurers, which can hinder accurate valuations and risk assessments.

“We need to identify not just what's happened in the past, but also the propensity for future claims, alongside accurate rebuild costs,” Rajguru said. "We need data about the business that's occupying the property, because property management is a key part of the risk itself.”

Rajguru emphasises that although data cannot predict every individual insurance claim, it is extremely valuable for understanding broader trends, provided it is properly processed, standardised, and structured to maximise its usefulness.

“Data is never going to be able to predict every single claim,” Rajguru said, “but it is hugely valuable for the ‘bigger picture’. The crucial part is how you process and handle that data. It needs to be standardised and put into a structured format. Having that general understanding can help us develop systems to harness the data and get the best value out of it.”

Brokers and clients play a key role

As the first lines of communication, both clients and brokers also have parts to play in addressing underinsurance. Underwriters need to provide brokers with the right data tools to educate their client base on the importance of continuous valuation to combat underinsurance.

Rajguru explained how brokers can use data to highlight real-world examples and raise awareness about the risks of underinsurance.

"Case studies are useful to highlight issues around building costs, inflation, and how valuations may need to be updated. Insurers can also support brokers by helping provide that kind of educational material,” she said.

How can you ensure clients are adequately
insured for rebuild costs?

Looking ahead: a data-rich future for underwriting

Insurers are looking for tools that provide instant access to insightful data to help them make key risk assessment decisions.

Rajguru discussed some of the themes behind Verisk’s ongoing approach, such as extracting data from aerial imagery to provide information about the property that a conventional assessment may not be able to access.

Bringing a client-centric approach to the forefront is another positive byproduct of data enrichment. The power of data to help remove pricing volatility and provide long-term value can be a major factor in client retention.

“Data can make the customer journey easier, such as pre-form-filling," said Rajguru. “It also can improve the customer experience through risk and reward using enrichment data to distinguish between risks that, at a high level, have a similar profile, to then be able to offer preferential rates to reward good behaviour.”

While progress has been made in tackling underinsurance in commercial property, gaps remain in effectively aligning insured values to rebuild costs. The industry is focused on education and tools to harness data, helping underwriters and brokers better manage commercial property risks.