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Magenta Insurance has been tapped by the British Insurance Brokers’ Association (BIBA) to provide an escape-of-water (EOW) scheme to BIBA members.
Part of the inet3 Group, Magenta features leak detection technology Waterlock in its scheme and offers flexible underwriting of household insurance. Discounts are afforded to householders who install the Waterlock device, which not only detects leaks but also shuts off the water valve to prevent further damage.
“Escape of water is a peril that costs the industry millions of pounds, so we are delighted to be working with Magenta on a way to address this,” noted BIBA technical services head Mike Hallam. “Giving our members the opportunity to use cutting-edge technology for the benefit of their customer, shows how close collaborations can lead the way in insurance solutions.”
It’s been estimated that EOW claims amount to a daily figure of £2.5 million.
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Commenting on the scheme, Magenta’s Catherine Bell said: “EOW is much more disruptive and distressing than policyholders realise, until it happens to them.
“It can turn lives upside down and while insurers can replace possessions and repair homes, they can’t protect against many other consequences, like replacing memorabilia, photos, and treasured items, or remove the inconvenience to living your daily life during the repair, which further compounds the stress experienced when your home is flooded.”
Meanwhile the Waterlock technology has a corresponding app which notifies users about the first signs of a leak. This allows householders to remotely manage their home’s water supply.
“BIBA’s 2019 Manifesto includes commitments to help members make use of fast-moving developments in insurtech and innovation, and this new scheme is one way to fulfil these,” added Hallam.
