Water damage prevention is becoming an important consideration for property insurers as they look for ways to limit losses before they develop into expensive claims. Connected building systems that track water consumption and automatically shut off supplies could give insurers and property managers a more proactive way to manage exposure. Quensus is among the providers seeking to demonstrate how this technology can improve building protection while generating useful risk data.
The financial incentive is clear. According to the Association of British Insurers (ABI), escape-of-water claims cost the insurance industry around £1.8m a day. Beyond the immediate expense of repairs, incidents can leave commercial premises unusable, interrupt business operations and require extensive restoration. These consequences can be especially difficult to manage across large property portfolios.
The challenge is compounded by the difficulty of identifying leaks before they cause widespread damage. Water escaping from concealed pipes, plant rooms or shared building infrastructure may go unnoticed until it affects surrounding areas. Zurich’s guidance on commercial water damage highlights the role that detection and suppression measures can play in managing this exposure.
For insurers, installing monitoring equipment is only part of the equation. Underwriters need to understand whether preventative controls are functioning effectively and whether they make a measurable difference to the likelihood and cost of claims. Without consistent reporting and comparable performance data, it can be difficult to determine how much weight these measures should carry in property risk assessments.
Quensus argues that conventional approaches can leave gaps in this process. Alarm-based systems generally depend on someone noticing a warning and responding in time, while scheduled inspections may not identify problems between visits. Property owners can also struggle to demonstrate how their risk controls perform over time, limiting the evidence available to insurers during renewals and portfolio reviews.
Its LeakNet system combines ongoing water-flow analysis with adjustable detection thresholds and automatic shut-off capabilities. By identifying unusual consumption and isolating the supply, the technology is intended to reduce the time between a leak developing and action being taken. This could help contain damage while providing a record of water use and system activity.
The company points to installations across several sectors as evidence of the wider operational benefits. At Heathrow Airport, Quensus reports a 26% reduction in water consumption and a return on investment in under a year. Welcome Break achieved reported savings of £65,000 across its sites within three months. Genting Casino, meanwhile, recorded annual savings of £3,755 and a reduction in water consumption of 1.5 million litres.
Although these outcomes suggest potential benefits for building operators, their relevance to insurance performance requires further investigation. Lower water use and financial savings do not necessarily translate into fewer claims or smaller insured losses. Demonstrating that relationship would require claims data collected over time, with results assessed across different property types and risk profiles.
Quensus has also been named a specialist partner of Aviva Risk Management Solutions. The partnership places its technology within an established risk management offering and reflects the potential role of automated controls in helping businesses address preventable property damage.
For facilities managers and property owners, the appeal extends beyond insurance. Automatically stopping water flow may limit the spread of an incident, while detailed monitoring records can help identify unusual consumption and support operational reporting. These records may also contribute to environmental, social and governance (ESG) reporting and provide additional information during insurance renewals. Building operators can further assess their arrangements against relevant industry guidance, including the FPA Joint Code of Practice.
However, translating these operational improvements into underwriting advantages remains a separate task. Better visibility into a building’s water systems may help insurers assess how risks are controlled, but the data must be sufficiently reliable and consistent to support meaningful comparisons. Insurers will also need evidence that controls are maintained, respond correctly when required and produce lasting improvements in claims outcomes.
Quensus recommends that organisations examine their existing water infrastructure, including mains monitoring, the potential for isolating individual zones and the reporting information needed to manage risk. Such assessments may be particularly valuable for complex commercial sites and multi-occupancy buildings, where a leak can affect multiple businesses or parts of a property.
For insurers, connected water management offers a possible route towards more informed property risk assessment and earlier intervention. The decisive question is whether providers can move beyond demonstrating efficiency savings to establish a clear link between preventative technology and reduced claims frequency or severity.
Read the full Quensus analysis.
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