New Loss Correlation Study From LexisNexis Risk Solutions Reveals Use of In-Line Water Shutoff Reduces Escape-of-Water Home Insurance Claims by 96%
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
