ATLANTA, May 5, 2020 /PRNewswire/ -- LexisNexis® Risk
Solutions, a global data and advanced analytics leader, today
released an insurance claims study revealing that in-line water
shutoff systems correlate with a decrease in water claims events by
96%. Further underscoring the value of incorporating smart home
technology, the study also found that those without water shutoff
systems reported a 10% increase in water claims events over the
same time period. The study measured changes in the number and
severity of water-related home insurance claims with the Flo by
Moen Smart Water Shutoff device against an uninstalled control
group of homes in the same geolocation one year before and after
installation.
The national study found that prior to installation, 2,306 Flo
homes had an average claims severity far greater than the control
group two years prior to installation of the device, signaling a
possible tipping point driving organic adoption of these devices.
The study also saw a corresponding 72% decrease in claims severity
one year after installation of the device, indicating that smart
water shutoff systems are working.
"Intuitively, it's easy to imagine that a device like this would
help prevent water leaks and significantly reduce the cost of
insurance claims due to water damage, but we had to see it to
believe it, and that's what we've begun to do with this study,"
said Dan Davis, Director, IoT and
Emerging Markets, Insurance, LexisNexis Risk Solutions.
"Escape-of-water claims are considered the most preventable of
major loss cost events, and we believe devices like these have a
chance to solve a challenging problem for insurers and
homeowners."
LexisNexis is leveraging its strong claims performance data and
the growing adoption of smart home devices like Flo's to help
homeowners and insurers understand the added value that these
devices can deliver. The study provides early evidence that in-line
water shutoff systems work, and homeowners appear motivated to buy
them to avoid the frustration of a second or third large claim
event. Homeowners are also motivated to manage their own water
usage for cost savings and conservation.
"Flo Technologies' core mission is to prevent water loss and
help our customers prevent damage in their own homes," said
Gabe Halimi, CEO and co-founder of
Flo Technologies. "With an increasing number of homes in the U.S.
adopting our system, we are not only conserving millions of gallons
of water, but also protecting homeowners from suffering significant
emotional hardship from water damage and filing expensive
escape-of-water insurance claims."
While there is still a lot to learn about where loss prevention
systems fit into insurers' workflows and rate plans, water leak
mitigation and the time and money saved could help drive adoption
of these smart home devices – leading to reduced loss costs,
improved customer experience and the promise of future underwriting
discounts on their insurance premiums.
For complete findings, download the LexisNexis Risk Solutions
Water Loss Study.
About LexisNexis Risk Solutions
LexisNexis Risk
Solutions harnesses the power of data and advanced analytics to
provide insights that help businesses and governmental entities
reduce risk and improve decisions to benefit people around the
globe. We provide data and technology solutions for a wide range of
industries including insurance, financial services, healthcare and
government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information and analytics for professional and business
customers across industries. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
About Flo by Moen
Flo by Moen is the
industry-leading Smart Home Water Security System with a suite of
products that work together or independently to protect your home
from water damage and leaks, 24/7. From the Smart Water Detector
that monitors drain-side and weather-related issues, to the Smart
Water Shutoff that monitors the vulnerabilities on the supply-side,
Flo By Moen's products are designed to be customizable for all
homes. Thus far, the Flo by Moen community has saved 23,395,795
million gallons of water and counting.
Media Contacts:
Rocio Rivera
LexisNexis Risk Solutions
Phone: +1.678.694.2338
rocio.rivera@lexisnexisrisk.com
Mollie Holman
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5611
mholman@brodeur.com
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SOURCE LexisNexis Risk Solutions