Coterie Insurance (Cincinnati), a digital distributor of small business insurance, has adopted Confianza, Inc.’s (Sarasota, Fla.), Property Replacement Cost Estimator into a new commercial property replacement cost solution.

As part of an initiative to improve the speed and accuracy with which commercial property valuations can be calculated for the company’s nationwide customers, Coterie selected and integrated Confianza’s Property Replacement Cost Estimator to provide quote prefill of digital businessowners’ (BOP) policy applications, according to a statement from Confianza, a provider of data analytics and machine learning solutions to insurance agents, brokers, and carriers.

“Confianza’s scores are helping Coterie avoid property under valuations and premium leakage through the use of their transparent model, quarterly rating factor evaluation, and refresh frequency,” comments Paul Bessire, Chief Data Officer, Coterie, an InsurTech distributor seeking to disrupt small business insurance by enabling instant coverage.

Current market valuations for commercial properties can be difficult to calculate, the Comfianza statement notes. Compounding these difficulties are the added factor that different business and property-use types represent widely varying costs of repair, some mandated by local and state governments. The vendor says its replacement cost calculation takes all of these (and more) into consideration.

Highly Transparent, Flexible Model

“Traditional factors and historical methods are no longer sufficient to calculate a good representation of replacement costs,” says John Petricelli, Chief Data Officer, Confianza. “Confianza’s highly transparent, flexible model includes several inflation variables, such as supply chain pressures stressing the availability and cost of common materials. The resulting prices have materially affected the efficacy of historical methods.”

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