Why Do Insurance Carriers Need IoT Water Loss Prevention Products?
Water damage is the single greatest source of loss for property insurers worldwide—60% of all property claims are water-related, and that statistic is incredibly hard to ignore as an insurance carrier who is certainly always striving to lower claims costs.
If you could eliminate 90% of your insureds’ property claims tomorrow, what kind of impact could that have on your business?
This is exactly what I want to cover in today’s blog post: just how much you could reduce your claims costs month after month while also improving your customers’ experiences, modernizing your services and lowering your operating expenses.
The Real Cost of Water Loss Today
If you’re a homeowner or owner of personal property, you’ve likely been in this place before: You’re on a nice spring vacation, enjoying your escape from work and your day-to-day routine. You think of nothing but the beach, fun with your family and relaxation.
But when you return home just a few days later, you enter your home—which is in a much worse state than you left it.
The air is damp and you instantly notice the smell of mold. You don’t see water on the floor, but on entering your kitchen, you quickly notice an ice maker leak behind your refrigerator. Because of the temperate spring weather at home, your air conditioning wasn’t on.
Your first thought is to contact a plumber and possibly even a contractor to assess the situation as soon as possible, and then follow it up with a panicked call to your insurance agent to file a claim.
Your agent is helpful, but the $50,000 claim is unavoidable. The damage is (literally) already done.
There’s A Better Solution
As an insurance carrier, you see this story differently. You were thinking about that potential expensive claim from the moment you saw the word “ice maker.” Your mind went straight to the resources you’ll use to service that customer in this time of need and the size of the claim when all was said and done.
If your client had installed a simple smart home device upon signing up with your service, this situation would have been completely avoided. IoT devices today have incredible capabilities, and, had they been a part of this customer’s home security, your office would have been alerted of the incident at the first sign of the leak.
Your client could have instantly turned off their water main from that cabana near the ocean, or had the call center representative shut off the water, sending a plumber to repair the problem, and the entire claim could have been avoided.
If you could eliminate 90% of these water incidents each year, you could cut out millions of dollars in claims. You could lower your staffing needs and overall business expenses. And you could lower premiums as much as 25% with the same profit margins.
This is why the pressure is on you, carriers—to invest in IoT solutions for your clients that drastically cut the frequency of these claims and improve the property ownership experience for everyone involved.
To see more details about the features of a smart home device that detect water from the start and could create an incredible transformation in your business, download our guide, Property Water Loss Prevention Service.