Biba has collaborated with Magenta Insurance to tackle rising cost of escape of water claims, as part of a wider approach to leveraging connected smart devices for home cover policies
From wearable devices and telematics to the connected home, brokers continue to collaborate with insurtech providers to offer insurance products that are more tailored to the policyholder and aim to reduce the underlying risk.
Biba has partnered with Magenta Insurance to provide its members with a scheme to help customers protect themselves against escape of water (EOW) in the home.
The scheme uses leak detection technology (Waterlock) to prevent small leaks becoming bigger problems and offers discounts for home insurance customers who use the technology. The Waterlock technology detects water leaks and shuts off the water valve to prevent further damage. It comes with an app that notifies policyholders about the first signs of a leak.
According to the ABI, the average cost of EOW claims has risen by 31% in three years to £2,638 and insurers pay out an estimated £1.8m to cover EOW losses every day.
Mike Hallam, Biba’s head of technical services, said the scheme was part of the broker body’s commitment to “help members make use of fast moving developments in insurtech and innovation”.
According to research company Gartner, there will be 20 billion devices connected to the internet by 2020, with some estimates this could rise to 125 billion by 2030. This offers an opportunity for insurers and brokers, as they innovate, to provide new products and services based on data captured by such devices.
Tech analyst Juniper Research estimates that during 2018, around 65 million new home insurance policies made use of smart home technologies.
Investment in insurtech is booming, attracting $1.59bn (£1.23bn) in investment globally in Q4 2018, up 155% over Q4 2017, according to Willis Towers Watson. It notes the UK has been responsible for 8% of total investment since 2012.
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