The commercial real estate industry is experiencing a paradigm shift in its approach to insurance compliance. Previously, insurance compliance was often seen as a tedious paperwork task handled by property management teams. However, rising insurance premiums, tenant demands for seamless experiences, and tighter budgets have brought the topic to the strategic level, with C-Suite executives now taking a keen interest.
Executives are examining the impact of insurance compliance on the bottom line and are finding that the current processes often fall short. They are asking questions about tenant expectations, the time it takes to approve vendors, the cost implications, and the confidence in error-free decision-making. Many companies are realizing that their compliance processes are inefficient and waste valuable time and resources.
Omri Stern, CEO of Jones, a compliance software solution for real estate and construction, acknowledges that the problem goes beyond simply buying software. He believes that the entire process of managing insurance compliance, even with digital tools, is fundamentally flawed. The day-to-day compliance process involves property managers spending countless hours collecting and reviewing insurance documents from vendors repeatedly, resulting in duplication of work and increased costs. Additionally, property managers may not have the necessary qualifications to perform this task effectively.
Stern suggests that if the workload of insurance compliance could be reduced by even 20 percent, it would free up significant time and resources that could be allocated to more strategic tasks. Proptech companies should aim to improve the real estate business model by cutting operational costs, being agile, integrating with core systems and platforms, and embracing data transparency.
In September 2022, Jones launched The Jones Network, which serves as a single source of truth for verified insurance data. Powered by a network of tens of thousands of vendors and their insurance data, analyzed by AI, The Jones Network provides customers with access to this information. Property managers can quickly look up insurance profiles, make informed decisions, and share access to data across their portfolios. The implementation of The Jones Network in commercial properties in New York City has already shown promising results, with cost optimization and improved service standards.
Industry professionals see the potential of building a network of vendors and insurance data, enabling smarter operations and the ability to meet the expectations of commercial tenants. The Jones Network is currently available in New York City and is set to expand nationwide in 2023.