Ondo Insurtech Regulatory News (ONDO)

06 June 2022

Ondo InsurTech Plc ("Ondo" or "the Company")

Ondo publish new study on LeakBot

LeakBot proven to reduce water damage claims by up to 70%

Ondo InsurTech Plc ("Ondo") - the London-listed insurtech aiming to become the world leader in claims prevention technology for home insurers - today releases new independent research which shows how the IOT-based claim prevention system LeakBot can reduce the cost of water damage claims by up to 70%. The first-of-its-kind research, across 3 countries was conducted by Consumer Intelligence.

Main Findings

· The new data is an important update as it shows that the commercial return of LeakBot is twice as good as previously claimed to insurance carriers

· LeakBot can reduce the cost of water damage claims by up to 70%

· Across the 3 countries the average reduction in water damage claims spending was 44%

· Average LeakBot can save an insurer $140 of annual claims costs per installation

· The new study underlines that LeakBot has a very large addressable market. 

Water damage is the biggest single cause of home insurance claims, accounting for $17 billion of claims every year in the USA and UK. While IOT-based solutions have long promised to provide a new way to manage this risk, this new research is the first time there has been analysis based on such a large data set spanning 3 countries and deployments by 9 different insurers. 

The research, conducted by Consumer Intelligence, included a customer survey of a statistically robust sample of 3,000 homeowners from the 43,000 homeowners on the LeakBot platform, representing over 56,000 device-years of data. The sample covered homeowners in the UK, US and Denmark. The research was designed and conducted by Consumer Intelligence - a leading UK provider of customer insight to the Insurance industry, with clients including major insurance carriers, the Financial Conduct Authority and The Office of National Statistics.

Findings

The research results showed that in the UK LeakBot reduced water damage claims costs by 70%, with a 39% reduction in the frequency of claims, and a further 50% reduction in the severity of the remaining claims. The new data is an important update as it shows that the commercial return of LeakBot is twice as good as previously claimed when presenting the solution to insurance carriers.

Across the 3 countries the average reduction in water damage claims spending was 44%, which shows that the more developed UK model (where the plumbing services are fully integrated as opposed to being out-sourced to 3rd parties) is the most effective model (and is now already being deployed in the US and Denmark).

The research further showed that customers who had been given a LeakBot device from their home insurer were 37% were more likely to choose to renew with their existing insurer than before receiving the LeakBot.

The findings constitute an important update on the impact the LeakBot technology have on mitigating cost of claim to house insurers.

LeakBot is a device that can be self-installed by homeowners, who clip it onto their mains pipe and download an app that tracks air and water temperatures. A leak draws colder water from outside, and creates a consistent drop in temperature. The customer receives an alert from LeakBot to let them know there's an issue, and they can then access a plumbing service to find and fix the leak. This is usually all provided free of charge to the homeowner by their insurer.

Mass-market potential

The new study underlines that LeakBot has a very large addressable market. In the United States homeowners insurance water damage claims cost equate to $200 per policy. LeakBot is now proven to be able to reduce this by 70%, meaning on average LeakBot can save an insurer $140 of annual claims costs per installation - far in excess of what it will cost a carrier to provide the entire LeakBot product and service to their policyholders for free.

In March 2022, Ondo Insurtech Plc became the first InsurTech to IPO in London. Its LeakBot device is now used by 10 insurers in 5 countries,by carriers such as Direct Line Group, Hiscox, Mapfre and TopDanmark.

The independent report, "Counting the Savings: How IoT leak detection is radically reducing water damage claims", can be downloaded from the company website.

Craig Foster, CEO of Ondo InsurTech Plc, says: "We knew that LeakBot worked - now we know exactly how well it works. This landmark research by Consumer Intelligence is what the home insurance industry has been waiting for - hard evidence that IOT-based systems can have a dramatic effect on claims costs and consumer loyalty, and can be deployed at scale with an immediate return on investment"

Enquiries

For further information, please visit www.ondoplc.com  or contact the following: 

About Ondo InsurTech Plc

Ondo InsurTech Plc aims to become the world leader in claims prevention technology for home insurers, working with home insurers to deploy proprietary solutions to deliver sustainable risk reduction. Ondo's focus is on the global scale-up of LeakBot - an end-to-end internet of things solution which protects homes from the impact of water damage. Water damage is the single biggest cause of home insurance claims, accounting for $17bn of claims every year in the USA and UK combined. LeakBot is a patented self-install solution that connects to the home wireless network and, if it detects a leak, notifies the customer via the LeakBot mobile app and provides access to a team of expert LeakBot engineers to 'find and fix' the problem. LeakBot partners with 10 insurance carriers - including Direct Line Group, Hiscox, Mapfre and TopDanmark - across 5 different countries, in Europe and the USA. In March 2022 LeakBot became the first InsurTech to IPO in London, as Ondo InsurTech Plc.

About Consumer Intelligence

Consumer Intelligence (CI) is an insight partner for financial services, inspiring confident decisions that build consumer trust. For 18 years the company has been benchmarking the insurance market and retail banks in the UK and beyond. The unique combination of benchmark data, consumer research and extensive experience has helped some of the world's major brands focus on delivering better services to customers and improving their own business performance as a result. Clients include the Financial Conduct Authority, The Office for National Statistics and Compare The Market. For more information, visit www.consumerintelligence.com