Ondo’s water leak tech gained strong interest from major US insurance carriers at ITC Las Vegas, with millions of homes in their pipeline. With this in mind, Ondo has ramped up production capacity and is planning to quadruple output to meet demand.
New partnerships and major announcements are expected by year-end.
Craig Foster, CEO of Ondo InsureTech, highlighted the strategic move as a response to the burgeoning demand in the United States. Over the past year, Ondo has signed partnerships with five U.S. insurers, including Nationwide, one of the largest insurance companies in the country. The company has launched its LeakBot system in four U.S. states and is in late-stage discussions with several large U.S. insurance firms for new contracts and expansions with existing partners.
LeakBot, Ondo’s flagship product, is designed to prevent water damage claims, which constitute about 30% of all household insurance claims. The system is already installed in over 100,000 homes and is used by 19 different insurers. Foster emphasized the significant market potential in the U.S., where the top 100 insurance companies cover 100 million homes and pay out $20 billion annually in water damage claims. Ondo’s system has demonstrated a 40% reduction in these claims, coupled with high customer satisfaction scores.
The U.S. market presents a lucrative opportunity for Ondo, given the higher average home insurance premiums compared to the UK. The average policy premium in the U.S. is $1,400, compared to just over £300 in the UK. This disparity enhances the unit economics of Ondo’s solution, making it a cost-effective option for insurers.
