HSB – a commercial insurance underwriting division of global reinsurer, Munich Re has announced that its top 10 Internet of Things (IoT) customers achieved an average return on investment (ROI) of 506% in 2021, by preventing millions of dollars of potential property and equipment losses.
The milestone was achieved through Sensor Solutions by HSB, an insurance focused IoT program that is enabled by Amazon Web Services (AWS).
Designed to prevent loss and reduce insurance claims, Sensor Solutions by HSB uses IoT sensors, data dashboards, and proprietary algorithms powered by Meshify – HSB’s IoT technology subsidiary.
The IoT solution monitors property conditions 24/7, as well as issuing actionable alerts for water leaks, potential equipment failures, or when other adverse conditions are detected.
Insurers and owners of diverse businesses, as well as offices, retail, apartments, schools, hospitals and houses of worship, are among the customers that report saving millions of dollars through the HSB program.
Brett Carruthers, Director of risk management for the New York School Insurance Reciprocal (NYSIR) commented: “In 2021, we achieved an exceptional ROI on our HSB IoT program. HSB’s unique combination of IoT technology and insurance expertise has improved the risk management and operational effectiveness of our members’ schools, and highlights NYSIR’s commitment to innovative solutions.”
In addition, Sensor Solutions by HSB leverages AWS IoT services, including AWS IoT Core – a managed cloud platform that allows IoT devices to easily and securely connect with cloud applications and other devices, for secure edge device connectivity, storage, ingestion and IoT data analytics.
The solution uses real-time data insights which results in fewer claims, innovative insurance products, and a better customer experience.
Mark Relph, global IoT lead for AWS commented: “HSB is at the intersection of IoT technology and insurance at the edge as the demand for digital services continues to grow. By building on the world’s leading cloud, HSB can quickly and securely connect and scale new insurance solutions that help customers gain the insights they need to evaluate risk and decrease costly property damage.”
HSB’s network of smart sensor technologies protects commercial facilities and saves them money by preventing damage, downtime, and costly business interruption.
“At HSB, we’re delivering real business impact, not just sensors,” said John B. Riggs, senior vice president of HSB Applied Technology Solutions.
“We are continuously improving our IoT program through new technologies, operational enhancements, and business model innovations. An average ROI of 506 percent in 2021 is proof-positive that our clients, who have committed to our program and are focused on scaling, are truly crossing the chasm on IoT.”
The five-fold return on investment is based on data that was provided by clients of HSB Applied Technology Solutions – a unit of HSB. The clients report an estimate of the value of the loss avoided as a result of their deployment of Sensor Solutions by HSB.
Over the past five years, HSB has collected and analysed almost 30 billion sensor readings and issued more than 270,000 alerts for more than 20 classes of business.