TIDMONDO
RNS Number : 6343N
Ondo InsurTech PLC
06 June 2022
06 June 2022
Ondo InsurTech Plc ("Ondo" or "the Company")
Ondo publish new study on LeakBot
LeakBot proven to reduce water damage claims by up to 70%
Ondo InsurTech Plc ("Ondo") - the London-listed insurtech aiming
to become the world leader in claims prevention technology for home
insurers - today releases new independent research which shows how
the IOT-based claim prevention system LeakBot can reduce the cost
of water damage claims by up to 70%. The first-of-its-kind
research, across 3 countries was conducted by Consumer
Intelligence.
Main Findings
-- The new data is an important update as it shows that the
commercial return of LeakBot is twice as good as previously claimed
to insurance carriers
-- LeakBot can reduce the cost of water damage claims by up to 70%
-- Across the 3 countries the average reduction in water damage claims spending was 44%
-- Average LeakBot can save an insurer $140 of annual claims costs per installation
-- The new study underlines that LeakBot has a very large addressable market.
Water damage is the biggest single cause of home insurance
claims, accounting for $17 billion of claims every year in the USA
and UK. While IOT-based solutions have long promised to provide a
new way to manage this risk, this new research is the first time
there has been analysis based on such a large data set spanning 3
countries and deployments by 9 different insurers.
The research, conducted by Consumer Intelligence, included a
customer survey of a statistically robust sample of 3,000
homeowners from the 43,000 homeowners on the LeakBot platform,
representing over 56,000 device-years of data. The sample covered
homeowners in the UK, US and Denmark. The research was designed and
conducted by Consumer Intelligence - a leading UK provider of
customer insight to the Insurance industry, with clients including
major insurance carriers, the Financial Conduct Authority and The
Office of National Statistics.
Findings
The research results showed that in the UK LeakBot reduced water
damage claims costs by 70%, with a 39% reduction in the frequency
of claims, and a further 50% reduction in the severity of the
remaining claims. The new data is an important update as it shows
that the commercial return of LeakBot is twice as good as
previously claimed when presenting the solution to insurance
carriers.
Across the 3 countries the average reduction in water damage
claims spending was 44%, which shows that the more developed UK
model (where the plumbing services are fully integrated as opposed
to being out-sourced to 3(rd) parties) is the most effective model
(and is now already being deployed in the US and Denmark).
The research further showed that customers who had been given a
LeakBot device from their home insurer were 37% were more likely to
choose to renew with their existing insurer than before receiving
the LeakBot.
The findings constitute an important update on the impact the
LeakBot technology have on mitigating cost of claim to house
insurers.
LeakBot is a device that can be self-installed by homeowners,
who clip it onto their mains pipe and download an app that tracks
air and water temperatures. A leak draws colder water from outside,
and creates a consistent drop in temperature. The customer receives
an alert from LeakBot to let them know there's an issue, and they
can then access a plumbing service to find and fix the leak. This
is usually all provided free of charge to the homeowner by their
insurer.
Mass-market potential
The new study underlines that LeakBot has a very large
addressable market. In the United States homeowners insurance water
damage claims cost equate to $200 per policy. LeakBot is now proven
to be able to reduce this by 70%, meaning on average LeakBot can
save an insurer $140 of annual claims costs per installation - far
in excess of what it will cost a carrier to provide the entire
LeakBot product and service to their policyholders for free.
In March 2022, Ondo Insurtech Plc became the first InsurTech to
IPO in London. Its LeakBot device is now used by 10 insurers in 5
countries,by carriers such as Direct Line Group, Hiscox, Mapfre and
TopDanmark.
The independent report, "Counting the Savings: How IoT leak
detection is radically reducing water damage claims", can be
downloaded from the company website.
Craig Foster, CEO of Ondo InsurTech Plc, says: "We knew that
LeakBot worked - now we know exactly how well it works. This
landmark research by Consumer Intelligence is what the home
insurance industry has been waiting for - hard evidence that
IOT-based systems can have a dramatic effect on claims costs and
consumer loyalty, and can be deployed at scale with an immediate
return on investment"
Enquiries
For further information, please visit www.ondoplc.com or contact
the following:
Ondo InsurTech Plc Craig Foster, CEO +44 (0) 800 783 9866
SI Capital Ltd Nick Emerson +44 (0) 1483 413500
(Company Broker) Jon Levinson +44 (0) 20 3143 0600
Cassiopeia Services
Ltd
(PR & Investor Relations) Stefania Barbaglio +44 (0) 7949 690338
About Ondo InsurTech Plc
Ondo InsurTech Plc aims to become the world leader in claims
prevention technology for home insurers, working with home insurers
to deploy proprietary solutions to deliver sustainable risk
reduction. Ondo's focus is on the global scale-up of LeakBot - an
end-to-end internet of things solution which protects homes from
the impact of water damage. Water damage is the single biggest
cause of home insurance claims, accounting for $17bn of claims
every year in the USA and UK combined. LeakBot is a patented
self-install solution that connects to the home wireless network
and, if it detects a leak, notifies the customer via the LeakBot
mobile app and provides access to a team of expert LeakBot
engineers to 'find and fix' the problem. LeakBot partners with 10
insurance carriers - including Direct Line Group, Hiscox, Mapfre
and TopDanmark - across 5 different countries, in Europe and the
USA. In March 2022 LeakBot became the first InsurTech to IPO in
London, as Ondo InsurTech Plc.
About Consumer Intelligence
Consumer Intelligence (CI) is an insight partner for financial
services, inspiring confident decisions that build consumer trust.
For 18 years the company has been benchmarking the insurance market
and retail banks in the UK and beyond. The unique combination of
benchmark data, consumer research and extensive experience has
helped some of the world's major brands focus on delivering better
services to customers and improving their own business performance
as a result. Clients include the Financial Conduct Authority, The
Office for National Statistics and Compare The Market. For more
information, visit www.consumerintellig ence.com
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