This article was produced in partnership with Moen.
Desmond Devoy, of Insurance Business, sat down with Jerry Fairborn, national sales manager – commercial, for Moen, to talk about ‘Mission Moen’, a pledge by the company to protect the world’s water resources, as well as to discuss how the company is using advanced AI technology to detect leaks before they can cause serious water damage, saving water, money and property in the process.
Leaky faucets or pipes can drip money down the drain.
Not only is this a problem for the way it wastes water, an important natural resource, but also because of the property damage such leaks can wreak, if not caught in time.
Insurance Business caught up with Jerry Fairborn (pictured), national sales manager – commercial, for Moen, for a question-and-answer session about how the company is tapping into cutting-edge AI technology to detect leaks so they can be dealt with before they cause significant damage to property – which fits in perfectly with the company’s “Mission Moen” commitment to help protect and preserve the world’s water.
It’s no secret that consumers – and therefore, insurers – are looking to work with companies that are focused on ‘doing better’ when it comes to the environment. What types of programs does Moen have in place that relate to this desire?
At Moen, we’re committed to creating exceptional experiences with water, from the water that runs through our faucets, to helping care for the water that flows through the natural world. In 2020, we announced Mission Moen, which is our pledge to conserve and protect the world’s most precious natural resource while helping people enjoy it even more.
Since 2020, we’ve helped save over 232 billion gallons of water and repurposed over 600 tons of ocean plastics. By 2030, we pledge to save one trillion gallons of water through our guiding principles of innovation. Along the way, we will repurpose 2,000 tons of ocean plastic through our product design and packaging engineering.
We also offer an innovative portfolio of solutions through our Smart Water Network that provides enhanced convenience and control over water in the home. The Smart Water Network is a truly integrated system that gives consumers the peace of mind that comes with being able to monitor their water usage and detect leaks in their pipes, 24/7. The heart of the network is a game-changing innovation called the Flo Smart Water Monitor and Shutoff. This device is attached to a home’s main water supply line and operates 24/7 in the background, continually monitoring for potential water abnormalities and leaks. Given that water damage is claimed six times more than fire and eight times more than theft, accounting for 24% of all insurance claims*, this device can make a significant difference in reducing water wasted due to leaks.
Featuring advanced AI with enhanced FloSense™ 3.0 Technology and MicroLeak™ Technology, the Smart Water Monitor and Shutoff learns the unique water usage patterns of the home and can sense leaks as small as one drop per minute along with other potential issues with unmatched precision. If it detects an abnormality in usage or the beginnings of a catastrophic leak, it can intervene proactively, automatically shutting off the water supply so the home suffers no damage.
The Flo Smart Water Monitor and Shutoff also helps automate conservation efforts in the home, giving homeowners the ability to monitor water usage by fixture type and set conservation goals to be more mindful of resources. This device can help reduce more than 90% of annual household water waste.**
How does this innovation help address some of the challenges the insurance industry may currently be facing, especially related to environmental concerns?
Insurers are definitely facing an array of financial, reputational and regulatory challenges in today’s world.
Severe weather events, due to climate change, have led to an increase in claims, which obviously has a financial impact on insurers. To help lessen the business impact caused by hurricanes, flooding and other climate-related events, insurers are looking to take advantage of opportunities to reduce their total claim costs any way they can. Moen’s technology can make a huge impact in reducing non-weather-related water claims. In fact, the Smart Water Shutoff is proven to reduce non-weather-related water claims by as much as 96%. Insurers who encourage policyholders to install this device can make a world of difference in minimizing expenses for both homeowners and themselves. Over 10 years, one in every six homes will file a claim for water damage and freezing of an average amount of nearly CA$17,000* – so there’s a lot of money to be saved. We’re actually seeing that some organizations have begun to offer reduced premiums for policyholders with the device, thanks to its incredible power to prevent water damage claims.
Insurers are also facing increased disclosure requirements from securities regulators, as well as a growing consumer preference to do business with companies that “do better”. This means that insurance companies risk losing business if they aren’t making positive choices to help take care of our planet. By working with their customers to have the Smart Water Monitor and Shutoff in their homes, insurers can address some of these issues and improve their reputation by offering an innovative solution to their policyholders that goes beyond the ‘status quo’. They may even be able to renew policies for homeowners with a history of water events, as they now can feel confident those homes are secure from future damage due to leaks.
There are regulatory benefits for insurers, too – a reduction in water damage claims means less waste ending up in landfills, and the device also supports requirements for water shutoff solutions for older or high-value homes at underwriting or renewal.
When it comes to the Flo Smart Water Monitor and Shutoff, what types of clients should brokers be recommending this product to? Are there applications for both residential and commercial clients?
The Flo Smart Water Monitor and Shutoff is a great fit for several types of clients:
Anything you would like to add?
By leveraging technology, we at Moen are providing opportunities to improve how we use water and reduce environmental impact, while also dramatically reducing costs and moving past the ‘status quo’ to help address the challenges and costs of water damage in an innovative way.
**Insurance Information Institute (III)
**Based on Average American Annual Water Leaks of 10,000 Gallons; see this link.
