How to reduce costly insurance payouts due to water leaks

Water leaks account for 25-30% of home insurance claims. They are one of the most expensive and frequent causes of insurance claims in property and casualty insurance, accounting for billions in payouts every year.  

For insurers, this not only means financial loss but also operational strain and reduced profitability.

However, many of these claims are preventable. With the help of smart technology, insurers can turn reactive claims handling into proactive loss prevention and thereby protect both their portfolios and their customers’ properties.

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Early detection is key

Even a small leak can cause thousands of euros in repairs if it goes unnoticed for hours or even days.  

Smart water spot sensors offer an easy way to quickly detect water leakages.  

By placing them in locations with high water leak risk (e.g., under the sink or near water-connected appliances), insurance companies and homeowners can immediately be alerted to water leakages through an app and prevent damage.

In advanced setups, connected auto-shutoff valves can automatically stop the water flow, preventing damage even more effectively.

The benefits of such a setup for insurance companies are enormous: Early detection leads to fewer and less severe claims, lower payouts, higher profitability, and improved customer satisfaction.  

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Shifting to a proactive insurance model

Insurance companies that are early adopters of smart water detection solutions have already seen measurable results, including double-digit reductions in water-related claims.  

But IoT-driven prevention solutions offer insurance companies even more benefits. Beyond reducing claims, they open new business opportunities for insurers through:  

• access to data that helps refine risk assessment, improve underwriting, and enable them to offer personalized pricing for their customers
• increased brand engagement via new digital touchpoints and customer loyalty

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How Onics helps insurers reduce payouts

Onics provides P&C insurers with a customizable risk prevention solution that enables insurers to not only prevent water damage but also reduce payouts related to fires and burglaries.

With this all-in-one risk prevention solution, insurers can easily benefit from smart technology and reduce payouts without investing in development.

The end-to-end solution is based on proven technology, offering reliable, advanced, but easy-to-use sensors and an app that can be adapted to the insurer’s brand and needs.

With Onics, insurance companies can:

• easily launch a customized water leak detection solution and reduce payouts
• offer additional preventative services such as fire and burglary detection
• gain access to sensor data and real-time insights for risk improved assessment
• seamlessly integrate the solution into existing offerings
• start small and scale as the solution grows.

Onics is not just a technology provider, but a partner for insurance companies that want to take a proactive approach and offer risk prevention.

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Get a demo of the risk prevention solution

Onics’ technology is already helping leading insurers reduce claims costs and minimize risk exposure.  

By providing all parts of the end-to-end solution, we enable a smoother path from detection to damage prevention.

Want to experience the advanced risk prevention solution for yourself?  

Book a demo with our insurtech experts.