Escape-of-water claims remain a major cost for UK property insurers, prompting greater scrutiny of technologies that can detect leaks, automatically stop water flow and provide evidence of risk reduction. Quensus, a water management technology provider, is highlighting how connected monitoring systems could help insurers and property managers move from reactive detection towards measurable prevention.
According to the Association of British Insurers (ABI), insurers pay out around £1.8m every day for escape-of-water claims. For commercial property portfolios, the consequences extend beyond repair costs to business interruption, repeat incidents and expensive reinstatement work. Quensus argues that technologies capable of preventing leaks and providing auditable risk data could help insurers and property owners address these pressures.
Zurich’s commercial loss analysis identifies water damage as a significant contributor to property claims severity, particularly when leaks remain undetected in risers, plant rooms and multi-occupancy buildings.
For underwriters and managing agents, this creates a challenge: establishing whether monitoring and automated shut-off technology can deliver measurable reductions in the frequency and severity of losses across entire property portfolios.
Quensus identifies three shortcomings in traditional water risk management. Many systems rely on alarms and inspections that require human intervention after a leak begins. Property owners may also lack auditable data connecting installed controls with reduced water consumption or improved claims outcomes. Inconsistent specifications across buildings can further complicate risk assessment and underwriting.
The company’s LeakNet platform combines continuous flow monitoring, adaptive thresholds and automated isolation to contain abnormal water usage before it develops into a more significant incident.
Quensus cites several deployments to demonstrate the potential financial and operational benefits. At Heathrow Airport, the system delivered a 26% reduction in water consumption, with payback achieved in under a year.
Welcome Break saved £65,000 across its sites within three months, while Genting Casino reported annual savings of £3,755 and 1.5 million litres of water.
These examples provide evidence of consumption savings and investment payback. However, the published figures do not independently establish corresponding reductions in insurance claims, leaving loss frequency and severity as important measures for future portfolio-level assessments.
Quensus is a specialist partner of Aviva Risk Management Solutions, positioning its automated shut-off and AI-assisted monitoring technology within the insurer’s risk management ecosystem.
For commercial property owners and facilities management teams, the approach offers several potential benefits. Automated isolation can limit the amount of water released during an incident, while consumption and event records can support insurance renewals, environmental, social and governance (ESG) reporting, and portfolio reviews.
Consistent monitoring and reporting may also help property managers demonstrate their approach to water risk controls in line with industry guidance, including the FPA Joint Code of Practice.
The broader challenge for insurers is determining how such controls translate into improved underwriting outcomes. Evidence of lower consumption and faster intervention can inform risk assessments, but demonstrating a sustained reduction in claims will require relevant loss data over time.
Quensus recommends that organisations reviewing escape-of-water exposure begin with a technical assessment of mains monitoring, zonal isolation and reporting requirements. This is particularly relevant for high-value properties and multi-occupancy buildings where an undetected leak can affect multiple areas or tenants.
Businesses can contact Quensus about a portfolio-level water risk assessment or explore its approach to working with insurers and risk managers.
As insurers examine how technology can improve property risk management, Quensus is positioning automated monitoring and shut-off as tools to support measurable prevention. The challenge for the industry is demonstrating that these controls deliver sustained reductions in claims frequency and severity, rather than simply documenting that monitoring equipment is installed.
Read the full Quensus analysis.
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