A recent study by the Insurance Information Institute (Triple-I) and Whisker Labs, supported by Octagram Analytics, reveals that IoT-based fire prevention technology can significantly reduce non-catastrophic fire claims. The research found a 63% reduction in these claims within three years of installing the technology.
The study focused on Ting, a home fire prevention solution from Whisker Labs. It showed that Ting reduced fire claims by 0.39 per 1,000 home years, equating to an $81 annual saving per customer by the third year.
"As property/casualty insurers increasingly focus on predicting and preventing costly damage that drives up claims and premiums, this study provides concrete evidence of the value that telematics technology can deliver," said Patrick Schmid, chief insurance officer at Triple-I. He emphasized that while IoT solutions have been gaining popularity, rigorous analysis like this has been rare.
Ting uses AI to detect arcing, which often leads to electrical fires. It monitors voltage at high frequencies through a single outlet to identify anomalies. On average, it detects hazards in one out of every 60 homes it monitors.
“Ting is about saving lives and homes - that’s always been our mission,” stated Bob Marshall, CEO and co-founder of Whisker Labs. He noted the financial benefits for insurers from using Ting as part of their services.
The device also features temperature monitoring to prevent frozen pipes by alerting users when temperatures fall below 42 degrees Fahrenheit.
To address data limitations and sampling bias in their research, the team conducted a self-controlled study over time with existing customers using Ting. "We developed a methodology to prove that home IoT technology can prevent losses in the real world," explained Stan Heckman, chief scientist at Whisker Labs.
Data from Triple-I and Verisk showed Ting's loss-prevention benefit averages $81 per home annually just from reducing fire claims. Additional advantages include water-related loss prevention and potential improvements in customer retention.
Currently, over one million Ting sensors are installed across the United States with about 50,000 new installations each month. Thirty property/casualty insurers offer Ting to their customers free of charge.
Since its inception in 1960, the Insurance Information Institute has provided risk and insurance insights to various stakeholders as an affiliate of The Institutes.