Ondo InsurTech plc (LON:ONDO) is the topic of conversation with Co-fund manager, Gervais Williams of Miton UK Microcap Trust plc as part of a wide-ranging interview on small-cap investments in the UK investment trust.
Ondo InsurTech (LON:ONDO) has just been shortlisted this week for the ‘PLC Breakthrough of the Year’ award. It’s invented an incredible solution for detecting water leakage, and is now partnered with 15 of some of the most well-known insurance carriers in Europe and America. Can you tell us how its incredible LeakBot technology works?
Gervais Williams commented:
Well, in a way, it’s quite simple. If you do have a leak in your house, rather than the water coming through every now and then when you use the tap, it comes through just about all the time as the leak kind of drips away. So, you find actually the temperature of the water coming into the house is lower if you have a leak than if it isn’t, and it’s that differential which allows the leak bot basically to detect whether you’ve got a leak.
So coming back to it, all you do is you put their small device on your in-pipe in your house and ultimately, it tells you if you’ve got a leak at an early stage before its done more damage than it would have done if it carried on leaking.
The reason why it’s taking off really is because the insurance companies give it free to their customers. Customers put it on; it’s quite easy to install it and so effectively, you get this roll out, funded by the insurance companies, which reduces their claims, but ultimately means that LeakBot itself continues to get lots of sales.
So, we’ve seen the company that came to market back in July ‘21, it was only £3 million market cap at that stage. Now, although its market cap is now a bit over £23 million at the moment, if anything, it’s still it’s really kind of proven the technology in terms of the insurance companies.
They’ve just signed up with Columbus Insurance in the US, which is a big insurer, one of the top 10 insurance companies in the U.S.. They’ve signed up quite a lot of Swedish and Danish insurers, as well as a UK one. So, it’s all very reassuring that these third party endorsements of that technology are there, the funding for the rollouts is there, and now we’re going to see how quickly that comes through and whether they can win other customers as well.
Ondo InsurTech Plc are creating the world leader in claims prevention tech for home insurers, based on Green Economy Mark winning technology LeakBot.