Property Managers ignore data whilst Insurers invest in finding it.

Technical Advances see investment in Building Telematics

Data delivered by IoT and telematics has long been a source of value for fleet managers and cash strapped teenagers in pursuit of the independence a first car provides. In contrast, recent findings by GWTInsight indicate that amongst 40 old and new buildings ranging from schools to commercial offices the majority had poorly configured building management systems and only 4 of the property managers responsible for the sites used a data driven approach to improve performance.

There is some evidence to suggest that increasing pressure to risk manage buildings in the Covid 19 shut down, to save money and reduce carbon footprint is leading to greater up take of emerging technology but attitudes towards it in traditional areas remains a barrier.

The ability to make data driven decisions or to initiate positive action requires access to good quality data. It appears that most building management or automation systems fall short with data presentation a problem and many older buildings having independent equipment feedback with no overall picture of performance. Technical problems including multiple protocols, security and connectivity particularly in complex, sensitive or ageing buildings has also been a factor.

Sensor based approaches have been more prevalent in recent years. They are used for specific risks; to guard against legionnaires disease for example or to monitor a factor like air quality in specific areas. But these too lack the ability to identify why bacteria are forming or CO2 rising. To get to the root causes and to understand improvement opportunity visibility of the systems that maintain environments is required. Emerging solutions are making this possible and investment is coming from a surprising source.

The commercial building insurance industry has faced this problem for some time. Underwriting risks across large portfolios of commercial buildings with little detail on condition and how they perform means annual premiums have to cover the blind spots. Armed with real-time insights, alerts and proactive risk management the sector sees the use of IoT and telematics as a root to significant benefits. Lower claim rates, reduced losses in the event of an incident and the identification of cost and carbon reduction opportunities for clients is a big attraction. 

Investment in IoT and telematics in commercial buildings is increasing from this surprising direction. It remains to be seen if built environment service providers and operational managers will embrace the opportunities IoT and telematics offers.

For more information contact Iain Wilcox on Iain.wilcox@gwtinsight-com.stackstaging.com and visit www.gwtinsight.com

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Our technology and knowledge provide value for insurers.

Create real time insights to better inform risk pricing.

Enhance joint risk management, establish a more robust targeted risk mitigation plan.

Reduce losses on claims events.

Improve client retention.

Create a new income stream.

Enable services to corporate ESG commitments.

Shift from policy to service.

Our technology and knowledge provide value for built asset service providers.

Create real time insights to better inform clients.

Automate current services reducing costs of service delivery.

Develop new services impacting the cost and efficiency of building operations.

Enable services to corporate ESG commitments.

Improve design through reliable performance feedback.

Create new revenue streams.

6 Creating new products and services

Because GWTi-Observer captures data in real time, across time and from multiple building systems and operational equipment, it unlocks insights never seen before. 

For insurers it has opened the potential for automation of risk assessments and an opportunity for risk engineers and underwriters to reinvent the evaluation and pricing of risk. It has provided new revenue streams and improved client retention.

For companies designing, manufacturing, and assembling building portfolios it is creating the opportunity to deliver digital twin benefits and will in time, underpin performance guarantees.

For providers of mechanical systems for solar power, cellular telephone networks or remote building provision it facilitates a mercurial shift in cost to service and the ability to disrupt the current servicing market.

For innovative consultants there are many opportunities to combine expertise and knowledge with the potential offered by GWTInsight technology to create innovative and cost-effective ways to reduce cost, risk, and carbon emissions.

5 Strategic and portfolio performance advantage

Capital Allocations. A bank wishes to improve the basis of its £50m replacement capex programme across a range of commercial building types. Under pressure to maximise ROI the traditional sources of information, surveys, manufacturers recommendations and maintenance records prove expensive, difficult to assemble and compare and frequently bear little relation to actual performance of the building. Across time and the whole portfolio data on core system performance and cost to run significantly improves decision making. When combined with user feedback and space use, it creates a powerful tool for capital allocations.

Benchmarking. This has long been the source of value. GWTInsight solutions provide data at building equipment level facilitating performance comparisons across all building types, across zones within a building and across a portfolio.

An outsourcing FM firm wishes to find the sources of added value and to be able to demonstrate to clients why action is necessary and the benefits it can bring. A pilot identified that a focus on large scale energy users like HVAC systems can deliver ROI within months and significant financial and environmental benefits over time.

Optimising use of space. Traditional methods of assessing space rely on point in time surveys or more recently sensors that count the number of people on a floor. Both methods miss essential information about behaviours and changing patterns in use. A pilot project with a leading building environment consultant in the UK, a combination of GWTi-Observer, GWTinsight-Maker and Ubiqisense sensors was able to:

  • identify and immediately allocate a unique code to an individual avoiding privacy issues and double counting often created by movement triggered sensors
  • identify very specific behaviours
  • identify ‘nesting’ where coats, bags and computers are left to claim desks that are otherwise not used
  • identify availability of desks and meeting rooms in real time
  • identify changing patterns of use over time.

The applications range from automating time bound surveys to real time availability of space and rooms delivered to a smart phone.

4 Reducing risk

The realisation of a risk in commercial buildings can create danger to people, reputational damage, disruption to operations, reduced revenue, and the challenge of renewal. Insurance companies share the burden of commercial building failures and have embraced the opportunity to work with clients to better identify and mitigate risk. 

The adoption of a digital solution across portfolios of buildings is now affordable thanks to the innovative GWTI technology. Whether focusing on the building systems or those critical to operations, known risks can be effectively mitigated by real time and over time insights with cost and operational benefits realised.

AXA XL and Zurich Insurance, global insurance companies have embraced the technology which underpins a new and disruptive digital approach to risk engineering. Other Insurance companies are embracing the technology to improve risk assessment, pricing, product offering and cost reduction inside of their operations.

Mutual benefits for clients and providers include:

  • the reduction in losses as any failures are identified in real time
  • reduced claims
  • avoidance of risk through early warnings or identification of hidden risks
  • reductions in balance sheet retentions
  • increased feasibility of self-insuring tier one and lower cost of premiums.

3 Reducing costs and carbon emissions

6% of the worlds carbon emissions are estimated to be caused by commercial buildings in use. The majority is created by energy consumed by building systems. ESG commitments make tackling this area a priority.

Heating, cooling, and ventilation systems (HVAC) in addition to the increasing technology loads and the impact of multiple visits to buildings by those responsible for maintaining them are the key carbon creators. Of course, carbon reduction is not a zero-sum issue, tackling inefficiencies in building systems, eradicating waste, and reducing system failures and the need for maintenance also reduces cost.

Our most common findings leading to action which delivered cost and carbon reductions are:

• Out of hours unnecessary energy consumption
• Systems competing against each other
• Poorly configured systems with few controls
• Failing equipment increasing energy consumption
• Underperforming equipment increasing costs in other systems
• Risk avoidance, the discovery of failing systems and mitigating action.
• Abuse of controls by users

These tactical observations and fixes enable broader cost reduction benefits including improvements in:

• FM strategy optimisation
• Reduced maintenance visits and costs
• Capital allocation and renewal decision making.
• User education and use

2 Meeting contract or regulatory requirements including ESG related reporting

What better way to identify performance and provide proof of delivery than real time and over time reporting on a simply accessed dashboard shared with all parties to a contract? This is exactly what GWTInsight technology can do.

A good example is a project where fines were being incurred for non-performance in a Public Finance Initiative (PFI) contract for a collection of schools. Classroom temperatures were consistently poor leading to multiple complaints from teachers and pupils. Attempts to correct it had failed. A GWTi-Observer and GWTinsight-Maker were used in a pilot project and quickly identified several system issues. The deployment of additional sensors increased insight and solutions were identified.

Sharing the findings with reliable data aligned the client and provider and facilitated the benefits which included better classroom environments, fewer carbon emissions, fewer site engineer visits and reduced energy bills. The financial penalties stopped.

Equally consultants advising on potential for improvement and tracking KPI’s in outsourced contracts can baseline performance with accurate data and then monitor performance over time.

The application of the system in commissioning of commercial buildings is also possible. The use of real time data on installed systems over a test period goes beyond simply checking the building management systems (BMI). The use of sensors combined with building systems completes an accurate picture which can be documented, proven with ‘independent data’ and tracked through occupation.

1 Meeting basic safety standards

From the outset and working with clientsclients, multiple instances of safety systems not working were found. Commonly occurring instances include:

• Low pressure in fire sprinkler systems
• Heat pumps working at 100%, 100% of the time
• Security alarm systems switched off after hours
• Dangerously high temperatures in computer rooms
• Critical safety equipment switched off whilst machines are working
• Machinery consuming high levels of power indicating a fire risk
• Legionella disease protection
• Carbon monoxide and carbon dioxide monitoring

These basic key safety issues can be identified by GWTi-Observer and GWTinsight-Maker technology reducing the risk of danger to people and business operations. And importantly, our technology allows users to monitor systems and set triggers for early warnings or real time alerts.