Liberty Specialty Markets (LSM) will provide its clients with real-time flood warnings triggered by a network of sensors, in what it claims to be a UK first.
Through the initiative, LSM’s flood-affected commercial clients will receive personalised warnings and graphical representations of water levels in their immediate area, allowing them to take action to protect their premises from flood water.
The insurer will install Internet of Things (IoT) sensors in flood-prone bodies of water, allowing clients to be notified if flooding is a possibility in the area. The sensors, provided by Lloyd’s Lab alumni Previsico, also detects when drains and culverts are flooding, giving property owners the opportunity to clear blockages and prevent further flooding.
LSM said that using IoT sensors will enable its underwriters to consider risks where a client has previously had some exposure to flood. The insurer’s claims team can also use data from the sensors to aid the claims process in case flooding does occur.
“We are seeing increasing flood exposures,” said Carol Baker, LSM’s head of customer proposition. “By integrating Previsico’s sensors and flood warnings, we can underwrite the risks at a sustainable rate knowing that we have real-time warnings in place and clients know how to respond should they receive an alert. Flooding is a major issue for our clients and the insurance industry. This initiative based on the use of sensors connected to Previsico’s flood forecasts is a practical response – one that gives underwriters the confidence they need to provide cover to clients with the added reassurance of tailored alerts and risk engineering support.”
According to LSM, while the Environment Agency provides flood warnings, these are for major rivers and coastal areas only. The system used by Previsico and LSM also monitors surface water flooding and ordinary watercourses such as small rivers and streams near to insureds’ premises.
“Because we install the sensors in ordinary watercourses close to the insureds’ premises, we get a very precise and relevant picture of what’s happened locally,” said Jonathan Jackson, Previsico’s CEO. “It generates a personalised alert that will give the insured time to prevent or prepare for a flood, thus reducing the amount of damage and insurance loss that could be incurred.”
