BIBA Adopts InsurTech In Its Latest Member Scheme From Magenta Insurance
The British Insurance Brokers’ Association (BIBA) has appointed Magenta Insurance, part of the inet3 Group to provide its members...
...with a scheme to help customers protect themselves against Escape of Water (EOW) in the home.
EOW costs the industry £2.5m per day in claims, not to mention the distress and inconvenience to householders and Magenta’s scheme looks to help prevent it.
Magenta takes a two-pronged approach. Firstly, it uses leak detection technology (Waterlock) to protect policyholders and help prevent claims. Secondly, it offers flexible underwriting of household insurance with discounts for customers using the technology.
Brokers can take full advantage of the latest technology to offer their customers the opportunity to install the Waterlock device in their home which can both detect water leaks and also shut off the water valve to prevent further damage.
The technology comes with an ‘App’ that notifies users about the first signs of a leak and allows them to simply and remotely manage their home’s water supply.
The insurance side of the scheme gives members access to capacity, for risks with previous EOW claims history and high associated excesses and/or premiums, as well as distressed risk across the majority of residential property types and uses.
Mike Hallam, BIBA’s Head of Technical Services, said: “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. 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.”
Catherine Bell of Magenta Insurance said: “EOW is much more disruptive and distressing than policy holders realise, until it happens to them. It can turn lives upside down and whilst 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.”
Hallam concluded: “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 fulfill these.”