In short

• Beyond smoke detectors and alarm systems, some insurers are incentivising customers to use smart-home technology such as smart leak detectors to mitigate risk.
• Certain smart-home features can prevent claims, while enhancing customer engagement and helping insurers stand out in the market.
• Insurers that adopt smart-home devices into their claims processes need to navigate customer concerns around cybersecurity and data privacy. 

A flooded house was the last thing Melbourne homeowner Ash Grove expected to find when he returned from a three-week holiday last year.

A pipe in his upstairs bathroom had burst, causing A$130,000 worth of damage and forcing him and his family to move into a rental property for eight months while the repairs were made.

Though his home and contents policy covered the relocation and repair costs, the situation was a huge inconvenience.

Now back home, he plans to install leak detectors in his kitchen, laundry and bathrooms. “If I’d known about these before, it would have saved us a lot of time and heartache,” he says.

Protection from avoidable accidents

Grove’s story will sound all too familiar to property claims teams. Allianz Home Insurance data reveals almost 30,000 claims for burst pipes in 2022-23.Meanwhile, water damage incidents accounted for nearly a quarter of all home insurance claims lodged through QBE in 2021, with the average cost coming in at A$5,000 and severe cases reaching more than half a million dollars.

Premium

You need to login to access this

Login

What are CIP Points? About ANZIIF Membership