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Making SENSE of IoT in Commercial Property: Real Use Cases



Here at the SENSE Consortium, we are passionate about the topic of Internet of Things (IoT) technology and its many benefits for the insurance and risk management industry. In previous whitepapers, we have explored the technology, the impact and benefits as well as the issues and challenges insurers, brokers and businesses face in adopting new real-time data solutions to better manage commercial property risk.


In our culture and adoption paper, we concluded:


By focusing on practical business ideas, a bold vision and quick-wins, and deeply aligned to the various stakeholders’ goals, change can be driven by:


  • aligning the purpose, goals, capabilities and processes necessary to achieve the desired improvement in risk management performance objectives;

  • delivering wider benefits around environmental sustainability, social and governance;

  • retaining a focus on the bottom line and short term return on investment by combining IoT with the delivery of the existing building facilities management;

  • creating an ecosystem that connects strategic capital investment programmes (Capex) with the day to day budget of the facilities management (Opex).


The insurance driven change should not be viewed in isolation to the existing built asset management, ignoring the wider business benefits and impact. Use cases can bring together existing programmes of work with advanced technologies to serve today’s business goals, while helping the end customer improve their built asset performance, improve user experience and meet regulatory objectives.


So what are those use cases? How have organisations gone from talking about IoT to making it a reality. Here are a few use cases in commercial property management bringing out some expected as well as surprising benefits.



Use Case 1: Thomond Park Stadium


Problem

There was an issue with the management of Safety Stewards on site for match day, as there was no proof that all staff were on site. Bills were being submitted by contractors for staffing numbers without any verification.

Solution

With the deployment of a digital IoT RiskTech platform they were able to track on contractors being signed into the site, see where they were allocated, and also know the exact number in all areas of the stadium in real-time. This reduced invoice for every game as they only paid for those that were signed in using digital ID cards with a saving per game.

Outcome/Benefit
  • The savings equate to €8,400 per game x 10 games per year = cost saving of €84,000 per annum

  • 100% of casualty claims have been defended successfully since 2018.

  • Incidents relating to people, assets and properties have reduced by 75% over 2 years.



Use Case 2: Savills Shopping center

Problem

Not really understanding if frontline contractor levels were correct for the task that was tendered. Daily tasks were not measured as all tasks were paper based.

Solution

Using a digital IoT RiskTech platform to track time in motion of the safety, cleaners, security and maintenance and monitoring the daily tasks the centre was able to slowly reduce headcount but still see the performance of the tasks stay in the high 90%, over a period of time they were able to reduce headcount whilst maintaining the risk profile of the venue.

Outcome/Benefit
  • Reduction in headcount resulted in an immediate saving on multiple contractors of £60k per annum.

  • 100% of casualty claims have been defended successfully since 2019.

  • Incidents relating to people, assets and properties have reduced by 50% over 18 months.



Use Case 3: Food Manufacturer

Problem

Our food manufacturing client wanted to monitor the health of their building to see whether they could increase the efficiency and productivity of their assets. They also realised that maintenance costs and power utilisation in their premises was increasing year on year with no obvious explanation.

Solution

We installed the Digital Risk Engineer across a few of their premises. The device was instantly able to read the existing sensors in the buildings and assets as well as take the data from the building management system and fire panel. This provided real-time insights on the health of the building and assets.

Outcome/Benefit
  • After just three months of using the device, the client was able to identify and subsequently fix six major flaws in the operation of the buildings and assets. These were previously unknown issues that were only uncovered through the new way of monitoring the building.

  • The client estimated that the device saved them €165k in future repairs.

  • The device data also enabled a 15% saving in power consumption.

  • Due to its success, the client is now rolling out the Digital Risk Engineer across 50+ sites.




Use Case 4: UK Housing Association

Problem

UK Housing associations with large portfolios have problems with damp & mould. Damp & mould can cause expensive claims and presents health risks if left untreated.

Solution

We installed the Digital Risk Engineer across a few of their premises. The device was instantly able to read the existing sensors in the buildings and assets as well as take the data from the building management system and fire panel. This provided real-time insights on the health of the building and assets.

Outcome/Benefit
  • The desired outcome was reduced claims/damage caused by damp & mould as it was repaired in early stages.

  • The actual outcome was the technology worked brilliantly and we were able to detect signs of damp & mould as planned.

  • We also found a benefit we didn’t’ expect – we found a water leak and we found an issue with the building ventilation… which turned out to be a problem in the blueprint and affected many similar buildings.

  • Whilst the technology worked well, the proposition failed as the Housing Associations weren’t setup to deal with alerts in real time – they printed the alert and put it to the bottom of the pile of jobs to be done thus losing all the benefits of early detection.



Use Case 5: Foodservice Operations at a University

Problem

A US university with more than 15,000 students, faculty, and staff needed a system to enable the 800 dining seats across many facilities around campus to be used most effectively and comply with new social distancing requirements / maximum allowable dining room capacity whilst making customers feel safe and supporting their busy schedules.

Solution

An IoT system using a network of sensors counted mobile phones as a proxy for counting the number of occupants within a given space. Beyond these raw foot traffic numbers, the technology also provided more advanced analytics including dwell times (how long people stay) and visit frequency (how often people come back). The final step was to deliver occupancy rates to students prior to their choosing a dining facility,to redirect diners and avoid risk of overcrowding. APIs pulled live information into a mobile app and website meaning that students could check the status of dining locations around campus to learn how busy each is, including possible wait times and dining room seat availability.

Outcome/Benefit
  • Additional benefits were noted through the use of historical data to optimize team member scheduling and reduce food waste by anticipating visitation by hour and day of week.

  • It is estimated that there was a 2% reduction in operating costs based on these boosted efficiencies.

Our upcoming event on 7th October will dive into more Use Cases. Register for your place below to hear directly from leading insurers and owners who have implemented IoT devices to transform how their commercial property risks are managed.


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