The partnership between WINT and HSB is a win-win situation across the board Insurance business America
The behind-the-scenes story of how a high-tech startup and an insurance giant joined forces
technology
By Mallory Hendry
Have you heard the story of a high-tech water management solutions startup that partnered with an insurance giant? It was the beginning of a beautiful partnership.
Amid COVID-19, Munich Re, one of the largest global insurance groups in the world, turned to WINT Water Intelligence. The insurer’s technology innovation team asked to take a look at WINT’s technology. In the five years that WINT has been in operation, the company attracted a lot of attention with its innovative solution. It made sense that Munich Re, an early adopter of insurance technology that continues to be at the forefront of InsurTech advancements and sets the market standard when it comes to product quality and commitment to transforming the industry through technological solutions, from the capabilities was attracted by WINT. In short, WINT offers an AI-based solution that uses real-time water flow analysis to detect leaks and then shuts off the water to prevent further damage.
“We are doing this with great confidence and a very high success rate,” said Alon Geva, CEO of WINT. “Our technology allows us to be very, very precise.”
Setting the stage
Geva and the rest of the WINT team didn’t know it at the time, but water leaks are also a major problem for insurance companies and are one of the biggest sources of loss on both P&C and Builder’s Risk policies. For example, with annual costs exceeding $13 billion in the US and £1 billion in the UK, insurance companies are either waiving coverage for liability for property water accidents or significantly increasing deductibles. This is a nuisance for both parties: Insurance carriers are paying out billions of dollars for water damage claims, and on the customer side, deductibles have increased from $10,000 per claim to over $1,000,000 per claim.
“With numbers like that, if a construction company with 20 ongoing projects is only affected by a few water events, they are likely to pay many millions in deductibles,” Geva said, adding he recently spoke with a customer who agreed to pay $2 M per event was requested. “When Munich Re approached us, they were looking for a solution to this burning problem.”
Beyond thoroughly checking the technology’s performance: “Because of the pandemic, the engineer couldn’t come to our office, so he built his own test lab in his house: I think he knows the system better than us in terms of capabilities.” Geva laughed – Munich Re worked with WINT on a joint analysis of how their solution helps customers in the real world. “The results were breathtaking and WINT is very proud of this achievement,” noted Geva.
“The study conducted by Munich Re found that when the WINT system is installed on a construction site, the number of water-related claims drops by 73% and the average payout drops by a whopping 90%,” Geva said. “Since water damage accounts for approximately 30% of the loss ratio in construction companies’ risk insurance, this has a significant impact on the construction company’s risk profitability.”
After a lengthy technical evaluation process, Munich Re decided to move forward with WINT through HSB, its US-based subsidiary that led the deal.
A diverse partnership
The partnership has evolved over time. In April 2023, WINT introduced its HSB-backed performance guarantee. Designed to mitigate rising deductibles in the construction risk market, the program covers up to a quarter of a million dollars in water damage on WINT-protected construction sites. In other words – the HSB experts trust WINT’s technology so much that they reimburse damages that WINT does not stop. The High Traction Program helps developers and general contractors concerned about rapidly rising insurance and deductible costs with exclusions specific to water leak damage.
“The performance guarantee for the WINT system shows the level of confidence HSB has in our product because they are willing to guarantee the damage value,” said Geva.
Following the performance guarantee, WINT and HSB recently signed a distribution agreement whereby HSB will resell WINT’s products directly to end customers as well as other insurance carriers as part of HSB’s risk mitigation IoT technology package. In addition to “gaining an extremely competent distribution partner, this is a strong statement from a trusted player in the insurance market, so we are very pleased about it,” noted Geva.
“As the cost of water damage continues to rise, water scarcity and water waste is a growing problem that we cannot ignore in the context of climate change,” said John Riggs, chief technology officer and senior vice president of applied technology solutions for HSB. “WINT’s artificial intelligence (AI)-based water management solutions provide our customers with a proven technology-enabled approach to preventing water damage and water waste. It also supports them in addressing ongoing challenges in protecting their investments and addressing water sustainability.”
It is a well-known fact in the construction world that the question is not if you will be struck by a water leak, but when. These end users can leverage the warranty to almost completely eliminate out-of-pocket costs, including high deductibles. Geva recently spoke with one of WINT’s largest clients, a Texas construction company, who told him that “preventing the unknown is critical to our business – so I’m largely in the business of predictability.” And that’s exactly what WINT does with the support of its partner HSB: providing a tool that allows us to work predictably.”
Water leaks cause direct damage, but it is more than that,” Geva said. “There are factors that you can’t get back from an insurance company, such as project delays, legal fees and reputation. We help protect you against all of these costs. Everyone has an incentive to introduce such a system.”
A WIN(T)-WIN(T) for everyone involved
WINT is not just a positive force in the insurance sector. The company focuses on sustainability and uses its AI and signal processing real-time monitoring to detect not only leaks but also water waste, reducing consumption, reducing operating costs and reducing carbon emissions. This environmental benefit is of great value as the company addresses water-related issues holistically and reduces the carbon footprint of its users.
“We hear from customers that the lower bills are nice, although the main concern is damage and recovery, whether related to insurance or self-insurance,” Geva said. “But the fact that we are now coming with the strong support of Munich Re and HSB, it doesn’t have to be this or that – they can save water, they can reduce their damage, but they don’t have to worry about paying high deductibles or even the hurdle of taking out insurance.”
Geva sees this move as market-driven, as customers consistently report that their main driver for installing WINT is going to sleep at night knowing their website is protected. And that’s just the beginning of what WINT plans to do as part of the comprehensive market launch.
“We have a unique solution and are a very fast-growing company,” said Geva. With a customer base of over 400 leading global companies and $10 million in potential loss prevention savings in 2023, the future looks bright and leak-free, according to WINT CEO.
“The insurance world is truly a great driver for us and our partnership with HSB takes our business to the next level. It’s a win-win for everyone.”
Photographer photo credit: Hila Kadi Krugman
similar posts
Stay up to date with the latest news and events
Join our mailing list, it’s free!
Source link
2024-07-01 15:06:58
www.insurancebusinessmag.com
