Problem statement or Market Opportunity:
In the context of ICICI LOMBARD’s IoT-enabled electrical safety solution, the problem statement or market opportunity is as follows:
Problem Statement:
As a leading General Insurance Company, ICICI LOMBARD (ICICI LOMBARD General Insurance Company) identified a pressing issue with electrical fires. Across India, a total of 3,375 fire incidents were reported in the past two years in 2021 (1,808) and 2022 (1,567) due to electrical short circuits as per the latest data by Hindustan Times. Additionally, former Brihanmumbai Municipal Corporation Commissioner, who also headed the technical committee on Safety Manual to respond to man-made disasters, highlighted that nearly 70 per cent of fire incidents in Mumbai were due to electrical short circuits. Last year alone, ICICI LOMBARD experienced a staggering 350 electrical fire incidents based on the analysis of property claims data resulting in claims exceeding Rs.70 million in damages. And currently available traditional electrical systems, including MCBs/Fuses, voltage stabilizers, and energy meters, lacked real-time monitoring and control capabilities to effectively mitigate the events of electrical short circuits. The absence of proactive measures left buildings vulnerable to electrical hazards, leading to disruptive fires that not only incurred financial losses but also jeopardized lives and businesses
There was a clear need for a smarter solution capable of detecting and preventing electrical fires before they escalated. ICICI LOMBARD’s mission was to develop a product that not only addressed immediate safety concerns but also transformed the paradigm of electrical safety, ushering in a new era of proactive risk management and protection.
Market Opportunity:
The market opportunity stems from the pressing demand for advanced electrical safety solutions capable of mitigating fire risks effectively. According to data from the National Crime Records Bureau (NCRB), fire caused due to electrical accidents accounted for 20% of cases in 2020, the Central Electricity Authority (CEA) reported more than 10,022 electrical accidents in India during 2019-2020. These incidents resulted in significant financial losses.
By addressing the critical need for enhanced electrical safety measures, ICICI LOMBARD’s IoT-enabled solution presents a compelling value proposition for a wide range of industries, including warehousing, commercial buildings, and residential complexes. These sectors, driven by increasing safety regulations and the imperative to protect assets and lives, represent a vast and growing market for innovative safety solutions.
Our solution not only improves electrical safety but also reduces costs associated with fire damage, insurance claims, and business disruptions.
In summary, the market opportunity for our IoT-enabled electrical safety solution is significant, driven by the urgent need for proactive risk management, regulatory compliance, and asset protection across various industries.
Write a brief about your innovation:
ICICI LOMBARD’s innovation revolutionizes electrical safety by integrating IoT (Internet of Things) and ML (Machine Learning) technologies. The core of our solution is an IoT-enabled device that continuously monitors electrical parameters like current and voltage in real-time, detecting anomalies and potential hazards before they escalate. ML algorithms analyze data collected by the device to predict and prevent electrical faults, ensuring reliability and safety. Our solution minimizes operation downtime with features like automatic restart after tripping, instant alerts for user, and power pattern generation for better load management. Our innovative system also incorporates a user-friendly web-based dashboard that offers detailed reports on the electrical safety of user’s establishments. This dashboard provides insights based on alert signals, giving users a clear view of their establishment’s electrical health over specific time periods. Additionally, our system can transmit these alerts and reports seamlessly through communication networks, ensuring users stay informed and able to take proactive steps. Leveraging IoT technology, our system integrates various units and sensors for real-time monitoring. Complementing the system, our method involves capturing voltage and current data, detecting anomalies, and generating alerts to prevent electric fires. It includes keeping detailed logs of signals and generating reports for users, as well as historical usage patterns. These reports are displayed on the web-based dashboard, providing users with actionable insights tailored to their establishment’s needs. Overall, ICICI LOMBARD’s patented solution offers a comprehensive approach to electrical safety, prioritizing prevention and user empowerment.
Highlight the market Potential or Impact:
The market potential and impact of ICICI LOMBARD’s solution are significant and far reaching. By addressing critical challenges in electrical safety, our innovation has the potential to disrupt and transform various industries and sectors, including:
1. Safety and Security Enhancement: In India, electrical fires pose a significant threat to both residential and commercial properties. According to data from the National Crime Records Bureau (NCRB), fire caused due to electrical accidents accounted for 20% of cases and as per NCRB, 330 deaths were reported in commercial building fires in 2019 in India, while residential or dwelling buildings saw a staggering 6,329 fatalities. And the Central Electricity Authority (CEA) also reported more than 10,022 electrical accidents in India during 2019-2020. By deploying our IoT solution, which offers proactive monitoring and early detection of electrical hazards, ICICI LOMBARD aim to substantially reduce the occurrence of such incidents, thereby enhancing safety and security for our clients and their communities. This not only protects lives and properties but also builds trust and confidence in our product’s effectiveness.
- Operational Efficiency and Cost Savings: Businesses in India face significant losses due to electrical disruptions and downtime. According to a study by the Federation of Indian Chambers of Commerce and Industry (FICCI) (Reference 2), the estimated cost of downtime for industries in India due to electrical faults is around ₹2,500 crore annually. ICICI LOMBARD’s IoT solution ensures continuous monitoring and predictive maintenance of electrical systems, minimizing downtime and reducing repair costs for our clients. By enhancing operational efficiency and reliability, this solution enables businesses to maximize productivity and competitiveness, thus driving economic growth and prosperity.
By addressing critical challenges faced by businesses and communities in India and offering a solution tailored to their needs, presents significant market potential and has a transformative impact on safety and operational efficiency.
References:
- National Crime Records Bureau (NCRB) – “Fire Accidents in India: Statistics and Trends.”
- Federation of Indian Chambers of Commerce and Industry (FICCI) – “Impact of Electrical Downtime on Indian Industries.”
Highlight the social impact and sustainability:
ICICI LOMBARD’s solution delivers significant social impact and promotes sustainability in several key ways:
- Enhanced Safety: According to a report by the National Fire Protection Association (NFPA) (Reference 1), electrical fires account for a significant portion of residential and commercial property damage. By mitigating electrical hazards, our solution directly addresses this issue, reducing the risk of fires and accidents. Additionally, research from the Occupational Safety and Health Administration (OSHA) (Reference 2) highlights the importance of electrical safety measures in preventing workplace injuries, underscoring the impact of ICICI LOMBARD’s IoT-enabled solution on creating safer environments for individuals and communities.
2. Improved Quality of Life: Studies such as those conducted by the World Health Organization (WHO) (Reference 3) emphasize the correlation between environmental factors and quality of life in urban settings. By providing reliable electrical systems that mitigate hazards and disruptions, this solution contributes to a more stable and conducive living and working environment.
This aligns with WHO’s vision of promoting health and well-being in urban populations, thus supporting improved quality of life.
- Environmental Sustainability: Research published by the International Energy Agency (IEA) (Reference 4) underscores the importance of energy efficiency and emissions reduction in combating climate change. Our solution’s optimization of energy usage and prevention of electrical incidents directly contributes to these goals, aligning with the broader sustainability agenda outlined by organizations like the IEA. Furthermore, studies such as those by the Environmental Protection Agency (EPA) (Reference 5) highlight the environmental impacts of electrical fires, emphasizing the significance of ICICI LOMBARD’s smart tech-enabled solution in mitigating such incidents and reducing associated pollution and resource depletion.
References:
- National Fire Protection Association (NFPA) – “Electrical Fires in Residential and Commercial Settings.”
- Occupational Safety and Health Administration (OSHA) – “Electrical Safety Guidelines for Workplace Injury Prevention.”
- World Health Organization (WHO) – “Urban Environmental Quality and Human Health.”
- International Energy Agency (IEA) – “Energy Efficiency and Climate Change: Bridging the Gap.”
- Environmental Protection Agency (EPA) – “Environmental Impacts of Electrical Fires and Incidents.”
