ITC DIA Europe

GROHE: How to decrease your water damage costs by more than 70%

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on Feb 25, 2021

Everyone agrees that IoT and prevention services will play a pivotal role in the future of living and consequentially in the future of home insurance. But the challenge many insurers face is how to create adoption at scale and making the transition from claims to prevention. One of the key areas of opportunity in property insurance is water damage, which is by far the biggest cost driver. Many insurers still struggle to tackle this problem, even though solutions are available – not just product solutions, but entire end-to-end solutions, tailored specifically to the needs of insurers and their customers – the home owners.

GROHE helps insurance companies to tackle the largest cost driver in property insurance: water damage. They offer a full-service solution, based on their breakthrough product GROHE Sense Guard, which enables automatic water damage recognition, detecting pipe breaks and shutting off water supply automatically, significantly reducing consequential damages. Their solution helps insurers to limit the number and impact of water damage occurrences to a minimum. In the future, GROHE’s technology will enable predictions of water damages, providing even more guidance for preventative action.

How it works
Water damage is a major challenge and cost driver for property insurance. Every 5 seconds on average, a pipe or water barrier breaks – amounting to almost 10 million cases of water damage in Europe. The subsequential payouts for water damage are substantial and continually growing as well, reaching billions of euros in payouts for European property insurers due to water damage.

This is where GROHE can help: they’ve developed an end-to-end solution, based on their product GROHE Sense Guard, to detect pipe breaks and stop water supply automatically. In addition, their system can detect drop leakages and frost risks, as well as detecting unusual water flows, alerting home owners about a small problem and encouraging them to take action, before any visible issues or damages occur.

GROHE doesn’t just offer a highly effective product to help prevent water damage, but provides an end-to-end solution for insurance companies, working in partnership towards joint objectives and KPIs. As part of the selection service, GROHE data experts analyse and select customers and properties most suitable for the program. Acquisition service provides a high-performing and tested direct marketing campaign, customized to the insurer brand identity. The deliveries of pre-installation and installation services are an installation appointment that suits the end user, and a high-quality installation executed by a certified installer. Afterwards, GROHE customer support takes over all product-related questions and issues, and pro-actively ensures that the installed devices remain active throughout the entire lifetime. Thus, the whole operation and customer handling is covered by one strategic partner: GROHE.

Reducing water damage costs while boosting customer loyalty
GROHE is already actively partnering with insurers in several European countries, primarily in Germany and Scandinavia, to help them reduce water damage costs by implementing their end-to-end solution. Insurance companies are reporting extremely positive results, with thousands of homes being actively secured by GROHE devices, showing a sharp decline in water damage occurrences and huge cost savings. The largest project of this kind has proven that the costs for water damages in the protected houses have decreased by more than 70 percent, and indications from other projects show similar cost savings.

This solution not only saves costs, it also improves customer loyalty. Insurers that work with GROHE solutions, offer their customers a valuable security service and a better experience. Pipe breaks and water damage usually cause serious damage to people’s home, causing a lot of stress and derailing people’s lives. With this solution, insurers can help their customers prevent these disasters – and help them save on their water bill on top of that, by alerting them to leakages.

Data to help predict future water damage and prevent it
By working with the GROHE solutions, insurers will also get access to a new level of data. Every single water damage claim can now be studied to understand what happened – this will help insurers to predict future water damages and take action, before they occur. The amount of data gathered through this solution and showing the actual status of each household, provides insurers with unprecedented insight and has the potential to help them take a major step forward in transforming their business from reacting to claims to becoming a proactive lifelong security provider.
Feedback from insurance companies, that are partnering with GROHE, has been very positive: they indicate that the water security program has a very positive impact within their organization, showing colleagues what is possible and providing inspiration on how to implement similar programs in other business areas. The program is seen as a clear differentiator in the property insurance market.

GROHE is a leading global brand for complete bathroom solutions and kitchen fittings and has a total of over 7,000 employees in 150 countries – 2,600 of them are based in Germany. Since 2014 GROHE has been part of the strong brand portfolio of the Japanese manufacturer of pioneering water and housing products LIXIL. In order to offer “Pure Freude an Wasser”, every GROHE product is based on the brand values of quality, technology, design and sustainability. Renowned highlights such as GROHE Eurosmart or the GROHE thermostat series as well as groundbreaking innovations such as the GROHE Blue water system underline the brand’s profound expertise. Focused on customer needs, GROHE thus creates intelligent, life-enhancing and sustainable product solutions that offer relevant added value – and bear the “Made in Germany” seal of quality: R&D and design are firmly anchored as an integrated process in Germany. GROHE takes its corporate responsibility very seriously and focuses on a resource-saving value chain. Since April 2020, the sanitary brand has been producing CO2-neutral worldwide. GROHE has also set itself the goal of using plastic-free product packaging by 2021.

In the past ten years alone, more than 490 design and innovation awards as well as several sustainability awards confirmed GROHE’s success. GROHE was the first in its industry to win the the CSR Award of the German Federal Government and the German Sustainability Award 2021 in the categories “Resources” and “Design”. As part of the sustainability and climate campaign “50 Sustainability & Climate Leaders“ GROHE is also driving sustainable transformation.

LIXIL makes pioneering water and housing products that solve every day, real-life challenges, making better homes a reality for everyone, everywhere. Drawing on our Japanese heritage, LIXIL creates world-leading technology and innovate to make high quality products that transform homes. But the LIXIL difference is how this is done; through meaningful design, an entrepreneurial spirit, a dedication to improving accessibility for all and responsible business growth. Our approach comes to life through industry leading brands, including INAX, GROHE, American Standard and TOSTEM. Over 60,000 colleagues operating in more than 150 countries are proud to make products that touch the lives of more than a billion people every day.

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