This CLE webinar will offer guidance to lawyers for policyholders and insurers working to resolve disputes over whether aerial imagery of the policyholder's property justifies an insurer's adverse action. The panel will discuss the increasing use of aerial imagery, elements of a respected and defensible program for collecting and using aerial images, and how policyholders can protect themselves in a time when there is no definitive industry standard.
At renewal, after a claim, or even mid-policy, insurers increasingly, without notice to policyholders, obtain or review drone, airplane, satellite, or even Google Earth images of private and commercial properties. They then rely on these aerial images to justify underwriting, pricing, renewal, cancellation, and claim-adjusting decisions, and to demand that policyholders make repairs as a condition of continued coverage. In doing so, adjusters and even insurer counsel implicitly and incorrectly assume that the imagery accurately, objectively, and incontrovertibly depicts actual conditions on the ground. If insurers rely on imagery for their decisions, they must recognize the limits of the medium and their decisions must be able to withstand evidentiary, bad faith, and other challenges.
Policyholders contending with adverse action have numerous concerns that often lead to more, not fewer disputes and litigation, actually defeating the stated and laudable goals of using aerial imagery and new technology. Concerns include the accuracy, currency, and reliability of aerial imagery and their ability to challenge it; the insurer's obligation to disclose the images relied on; overreliance on imagery alone; AI manipulation; unfair claims practices; and privacy, surveillance, and unauthorized monitoring. What starts as a limited dispute can escalate into full-blown scrutiny of company practices and policies—or the lack thereof—that catches the eye of regulators and plaintiffs' lawyers alike.
Because there are no national industry standards for the use of aerial images, state legislatures and insurance commissioners have stepped in with laws and regulations related to transparency and communication, and mandate proper dispute resolution mechanisms. The principles and guidance in the NAIC Model Bulletin on the Use of Artificial Intelligence Systems by Insurers are being adapted for the use of aerial imagery.
Listen as our panel of experts reviews current trends and developments in the use of aerial imagery for underwriting, pricing, and claims decisions; practical insights for developing a respected and defensible program for collecting and using aerial images; and best practices for policyholders to protect themselves from overreliance on imagery.
