Recent years have seen advances in technology that have significantly impacted on all areas of the economy, changing the way in which we work, and indeed the way in which we live our lives.
While the property sector is occasionally regarded as being slow to embrace technological change, there is no doubt this industry is being disrupted.
As the property industry’s use of – and understanding of – technology becomes more sophisticated, it is technology that is making the fundamental difference to the way businesses work and create real value.
The impact of technological change for surveyors – or proptech as it is more commonly referred to in the industry - is significant.
While it’s easy to get bogged down in some of the more negative discussions around technology, for example roles becoming automated or concerns around cyber security; one thing we are absolutely sure of is that technology has the ability to substantially improve risks for surveyors and from a professional indemnity (PI) perspective, it’s important to take note.
Valuations
Developments in Big Data, the Internet of Things (IoT), blockchain, artificial intelligence (AI) and automated valuation models (AVMs) are already impacting the surveying industry.
These technologies have brought about significant improvements in professional standards across the industry, providing stakeholders with more accurate ‘versions of the truth’, increasing confidence in overall governance and due diligence.
Having a robust audit trail is a vital element of the surveying journey and can be crucial when defending a potential PI claim.
Having as clear a picture as possible into the valuation of either a residential or commercial property is so important. Big data, for example, can be used by valuers to paint a clearer picture of the present value and assist in a future ‘value’ prediction of any property. Therefore, they are less likely to be exposed to allegations of over valuation further down the line.
Examples of data impacting property values include crime and school data, flood map data, home prices, delinquency rates, home equity, housing inventory, local industries and much more.
Property management
Using intelligent data, workplace analytics as well as automated workflow management across the range of facility and property portfolio management activities will reduce risk within the property industry.
Data driven property management enables portfolio managers to identify any issues – both practical and compliance related – which can then be solved more effectively from a supply chain point of view as a result of more sophisticated mapping.
However, in addition to the aforementioned technologies, unmanned aerial vehicles are also demonstrating their own set of uses in property management.
More than ever, drones are being used to capture data and imagery in even the most inaccessible locations, providing portfolio managers with more accurate data capture, quicker lead times, minimal disruption, more efficient report access, and reduced risk which will benefit both surveyors and their insurers in the longer term.
As we look forward, the complexity of running portfolios will almost certainly lie in understanding a set of data that tells the story of the buildings and what goes on inside them. This may seem obvious but it is at the core of how technology can fundamentally change operations and decisions in order to reduce risks.
At CNA Hardy, we are keen to support our clients through the many ways they can reduce their risk through the use of technology, while being mindful of the new, challenging and interconnected risks that can emerge.
For more information, please feel free to reach out to our team.