Buildings assistance provider HomeServe is the perfect fit for insurers looking to reduce the impact of claims in the property space, and drive the concept of smart tech in the home.
While many utilities providers have concentrated their efforts on improving domestic energy consumption, a select few have developed products with a direct affiliation to the insurance industry. HomeServe currently leads the market for products with functions advanced enough to have significant benefits for insurers and to make a real difference in the claims environment, due in part to the group’s latest product release, LeakBot.
This new water leak detection device is set to be welcomed by consumers and providers alike, and is the first smart-tech product, designed for home use, that resonates with one of the biggest concerns for household insurers: the escape of water.
LeakBot was officially launched in June 2016, with its main purpose being to help protect consumers from the impact of water damage in the home by alerting the user of a leak before it causes extensive damage. According to data from the Association of British Insurers, 2015 saw a total of £754m in gross incurred claims for the escape of water in the UK property insurance market – the third highest behind fire and weather incidents – with 78.7% coming from the domestic/residential market. The number of water-related claims in the property insurance market totaled 316,000 – the second highest behind accidental damage – with 86.2% occurring in residential homes.
With LeakBot monitoring the property’s main water supply around the clock, users will be able to identify and resolve water leaks before damage costs grow and result in the submission of a potentially expensive insurance claim. The risk of device fault is also minimal as LeakBot operates autonomously and utilizes a proprietary network connection, meaning it doesn’t require Wi-Fi connectivity. Therefore, the device would still function fully despite a poor internet connection.
LeakBot retains all of the necessary features and qualities to make a real difference to the claims environment in the property insurance market. The frequency and cost of claims in home insurance are high, and LeakBot offers a way for providers to reduce their exposure. The product’s compatibility with smartphones means users can receive and react to alerts easily, especially with the smartphone being an integral part of modern consumers’ lives. Customers are still reluctant to embrace the use of smart tech in the home (see The standoff between insurance and technology continues), but if there is one smart device which could be a game-changer, HomeServe’s LeakBot is the first that springs to mind.
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