Insurance has always been a reactive industry. An incident happens, and the insurers pays out on the claim. However, with advances in technology, is the industry moving to a more proactive future? One area where that transition is already becoming a reality is water-related property damage.

Property claims are increasing. Whether it is caused by internal faults or the increasing frequency of natural catastrophes, insurers need to find a way to reduce their costs.

FinTech Global recently spoke to Dan Simmons, managing director and founder of Quensus, about the future of property insurance and water risk detection.

He explained that UK insurers paid a record £6.1bn in property claims in 2026, leading them to seek solutions to ballooning costs. He said, “The industry is abandoning the historical “detect and repair” model, driven by unsustainable costs.” Insurers are moving to a ‘predict and prevent’ architecture, powered by real-time asset intelligence.

Internet of Things (IoT) technology underpins this capability. Sensors and AI can continuously monitor properties and pipework to identify potential risks and detect leaks. Water supplies can then be shut off automatically before a leak turns into a major claim. Simmons noted this is “fundamentally transforming how underwriters manage portfolio risk.”

An undetected leak can quickly turn into a sizable claim. For instance, a leak in an unoccupied workplace over the weekend or a burst pipe in a home while the residents are out, can quickly cause devastating damage to furnishings and the building’s structure.

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