Loss Prevention Technologies' Effect on Property Damage Cost and Financial Savings

This paper presents an analysis of loss prevention technology investments across more than 4,000 buildings owned by Danish municipalities to estimate the financial returns from such investments. The study finds that while these technologies significantly reduce the cost of damage, the expected savings are insufficient to finance the investment or operation costs. Therefore, it is important to consider non-property or non-physical damage, such as business interruptions, when making investment decisions to determine if the full gains from the investments exceed the cost.

Sølvsten, S., & Kaiser, B. (2023). Loss Prevention Technologies' Effect on Property Damage Cost and Financial Savings? Evidence from Danish municipalities. Risk Management and Insurance Review, 26, 57–82. https://jrmi.au.edu/index.php/jrmi/article/view/257.