Insight Risk Targets Builder’s Risk Water Damage Losses
Technology-focused MGA seeks to reduce incurred losses by up to 90%
Water damage is the top driver of Builder’s Risk losses, yet a comprehensive solution for addressing this pervasive risk has remained elusive, until now. Insight Risk, a technology-focused Builder’s Risk managing general agent (MGA), announced today it is launching an innovative model designed to reduce water damage losses on commercial occupancies by up to 90%.
By bundling Internet of Things (IoT) water damage prevention solutions, sound underwriting, and proactive risk management, Insight Risk plans to significantly reduce water damage losses while delivering both a lower cost of risk to policyholders and superior financial returns to carrier partners. Licensed in 48 states, Insight Risk is backed by A+ rated Munich Re Specialty Group Insurance Services, with initial distribution by Marsh McLennan Agency, American Global, and Holmes Murphy.
Industry leaders have invested significant time and effort toward finding an effective water damage loss mitigation solution. However, technology costs and installation expertise have often made these solutions prohibitive except for large projects. Insight Risk is taking a different approach. By taking full ownership of the entire process, the MGA can deploy advanced technology sensors at no additional cost to contractors, brokers, or insurers. Once the building is enclosed, Insight Risk will install water-, temperature- and humidity-monitoring sensors in strategic locations. When irregular conditions are detected, sensors send an alert to the project team, enabling an immediate response, 24/7. It is an approach that will substantially reduce or even eliminate larger water damage claims.
Insight Risk was founded by industry leaders Chad Hollingsworth, co-founder of Triax Technologies Inc., and John Dempsey, former Global Practice Leader of Aon’s Claims Preparation, Advocacy and Valuation team. They are joined by Bret Bush, a 30-year industry veteran and former Strategy and Execution Lead of IoT at The Hartford; Michael Reich, former Assistant Vice President of Berkshire Hathaway Specialty Insurance’s U.S. Builder’s Risk portfolio; and Mark Reagan, former chairman of Marsh’s Global Construction Practice.
“Water damage drives nearly 50% of all Builder’s Risk claims payments,” said Hollingsworth, President of Insight Risk. “Yet even with all the industry’s previous loss control work, there still is no reduction in losses. The Insight Risk approach solves the single largest problem hindering the widescale adoption of a technology-based solution – how to pay for the appropriate solution. So, we decided to rewrite the rules – pay for the technology ourselves – and work with our partners on improving the contractor’s or owner’s risk profile – by making them a better risk.”
Insight Risk’s approach is in direct response to feedback from contractors, owners, and brokers/distribution partners. Ongoing discussions with these groups show high demand for IoT solutions when there is no additional cost to the insured or broker, and technology deployment does not interfere with operations or the construction schedule.
“The response from pre-selected, high-quality construction brokers has been enthusiastic,” said Dempsey, CEO of Insight Risk. “They understand all too well their clients’ desire to lower the total cost of risk in any way possible, and they see the reduction of water damage losses as a tangible benefit.”
The company will also deploy technology-enabled risk control services for U.S. mainland fire-resistive construction projects with construction values between $25 million and $125 million.
“Insight Risk’s business model aligns the interests of insureds and insurers,” said Steven Weiss, Chief Underwriting Officer – Ocean and Marine, Munich Re Specialty Group Insurance Services. “They built an insurance organization around technologies that reduce loss ratios. By bundling technology with insurance, Insight Risk becomes a one-stop loss prevention and risk transfer solution. All told, Insight Risk provides significant and valuable differentiators in today’s Builder’s Risk marketplace.”
To obtain more information about Insight Risk and how the company can help reduce water damage exposure, visit www.insightrisktec.com
About Insight Risk
Insight Risk Technologies is a technology-focused Builder’s Risk MGA that bundles Internet of Things (IoT) water damage prevention solutions, sound underwriting, and proactive risk management to reduce water damage losses by up to 90%. By owning the IoT technology solutions, we remove a major barrier to a safer and better-connected jobsite, helping leading brokers, contractors, and owners/developers avoid losses and minimize the impact of unforeseen events.