In Belfast, a heritage estate regularly used by children faced a familiar challenge: how to inspect an ageing roof safely without closing the site or putting anyone at risk. Instead of scaffolding and delays, Aviva deployed a drone. The aerial inspection flagged blocked drains and signs of water ingress, enabling quick preventative maintenance. The site stayed open, risks were reduced and a costly insurance claim was avoided.

Examples like this point to a growing shift in commercial and specialty insurance in the UK. Loss prevention and risk management are no longer back-office functions; they are becoming central to strategy, with technology playing a key role. Insurers are adopting digital tools such as Internet of Things (IoT) sensors and drones to detect, manage and prevent damage in real time. This marks a move away from periodic check-ins towards continuous engagement, more closely aligned with client operations. In this context, insurers are transitioning from indemnity payers to risk partners.

This evolution is more necessary than ever. Climate-related events are becoming more frequent and severe. Cyber threats are increasingly sophisticated. Inflation continues to drive up the cost of claims. And the challenge is global: According to Swiss Re’s 2024 sigma report, just 43% of economic losses from disasters were insured. A more proactive model helps close this protection gap.

What do we mean by loss prevention and risk management?

At their core, the terms “loss prevention” and “risk management” refer to the tools, processes and expertise insurers use to identify, assess and reduce risks before they result in claims. This becomes especially complex in specialty lines such as property, marine, construction, cyber and liability, where exposures are high and operations often span multiple geographies.

Take commercial property portfolios or marine fleets. Coordinating site surveys, managing specialist visits and translating findings into action is time-consuming and hard to scale, particularly with shortages in risk engineering talent.

Keeping assessments current is another challenge. Static risk scores or annual inspections no longer reflect today’s dynamic exposures. Real-time insight and continuous monitoring are becoming essential.

Tech in action: smarter, faster risk management

Insurers and brokers now have a growing library of use cases that show the tangible impact of well-applied tools. They not only indicate how insurers are redefining their role in helping clients stay ahead of risk but also illustrate how this shift is taking shape across the UK.

IoT sensors for smarter prevention

IoT is turning passive monitoring into active protection. A few years ago, Aon led an initiative to safeguard global COVID-19 vaccine shipments, a widely cited example that showed what connected tech could deliver under pressure. By combining sensors with real-time analytics, insurers enabled automatic loss payments when temperatures fell outside agreed thresholds, speeding up claims, reducing spoilage and improving transparency.

The same principles are now being applied to everyday risks. In the UK, LeakBot’s smart water sensors are tackling one of the most common causes of property damage. Installed in over 43,000 homes, these sensors detect hidden leaks early, before they escalate. Independent analysis from Consumer Intelligence shows that LeakBot can reduce the cost of water damage claims by up to 70%.

In the commercial sector, AXA XL partnered with InsurTech LAIIER to roll out ultra-thin adhesive leak sensors across offices, hotels and student accommodations. These discreet devices detect small leaks in hard-to-reach areas, triggering alerts that minimise damage and disruption.

Usage-based fleet insurance

Technology is also changing how insurers approach behavioural risk. London-based insurtech Flock, for example, is using real-time analytics and behavioural insights to offer usage-based motor fleet insurance. Its partnership with e-mobility provider Voi led to a significant  improvement in claims reporting, rising from 14% within 24 hours to 67% by year-end.

It’s not just quicker claims handling. It also helps control costs and improve driver safety. Direct Sameday, a collection and delivery company, leveraged telematics solution Flare to monitor hazards and restrictions, then proactively notify the fleet’s drivers. Incorporating this system, which monitors both static and dynamic hazards, lowered the rate of accidents, reduced the company’s overall yearly insurance premium and helped drivers go about their work safely.

Aerial drone inspections

Drones enable insurers to inspect hard-to-reach sites quickly, safely and with minimal disruption. Used mainly for underwriting and claims assessments, they help reduce costs and speed up decision making. By 2030, around 2,500 drones in the UK are expected to be used by the financial, insurance, professional and administrative services sectors for these purposes, .

In its 2024 update to the previous study, PwC found that 90% of participants reported that there was no stakeholder or client barrier to adoption of drones, indicating a broader acceptance of this technology by all parties. Aviva’s use of drones to survey its Belfast estate is a clear example of how this technology can help prevent damage and maintain business continuity.

Cyber risk tools and training

Cyber risk is another growing concern, with 70% of UK organisations reporting an increase in cyberattacks over the past year, according to Hiscox’s Cyber Readiness Report. In response, insurers are offering more proactive, tech-enabled support alongside traditional cover. These tools focus on prevention as much as protection, helping businesses build resilience before incidents occur.

Hiscox’s CyberClear Academy is one example. The platform offers policyholders real-time simulations and interactive training to help employees spot phishing attempts and respond to threats effectively. With over 36,000 course completions, it’s often used as part of wider risk management efforts. Other insurers are also embedding threat monitoring, early warning systems, and tailored cyber hygiene training into their propositions to reduce exposure and improve client preparedness. AIG’s Cyber Resiliency Program combines real-time alerts on vulnerabilities with employee training to help businesses detect and respond to threats before they escalate.

Data-driven underwriting

Underwriting is also being transformed. In 2025, AXA XL and McGill and Partners launched a digital-first platform for the UK and Lloyd’s market. Using live dashboards that pull data from multiple sources, underwriters get real-time insights into exposure and client risk. This streamlines placement, aligns to risk appetite and accelerates decision-making.

Earlier this year, RSA also shared how it is incorporating AI into its underwriting workflow to automate manual tasks and bring deeper insights to the forefront to accelerate growth opportunities. Since AI can process a greater amount of data much more rapidly than human underwriters, this approach can yield risk insights faster while enabling the insurer’s underwriters to prioritise more complex risks and more accurate pricing.

Risk management is no longer about limiting losses. Used strategically, it strengthens underwriting, supports profitability and builds client trust.

For insurers, real-time data means fewer claims and more informed decisions. For clients, it brings less disruption, faster recovery and, in many cases, better terms. As the varied use cases above show, those making the greatest impact are using technology not just to react to risk, but to stay ahead of it.

Learn more about how insurers are leveraging technology to drive loss prevention in our case study Fortune 500 Insurer Revolutionizes Homeowners With AI and Aerial Imagery.