Wolly: Why Insurers Should Lead the Home Rehabilitation and Energy Efficiency Revolution

Sustainability and the renovation boom are driving insurers toward integrated home service ecosystems

Madrid, October 2025. Spain is facing an unprecedented real estate challenge as the decade draws to a close. Under the EU Energy Performance of Buildings Directive, by 2030 all homes for sale or rent must hold a minimum energy rating of class E. If this requirement is not met, millions of homes will be excluded from the housing market, forcing owners to carry out renovations to improve insulation, heating, and cooling systems.

It is estimated that over five million homes must be rehabilitated before 2030 to remain eligible for sale or rental in compliance with European law.

An aging housing stock and a structural opportunity

This transformation, aimed at achieving a net-zero housing stock by 2050, is particularly critical in Spain, where the average age of homes exceeds 43 years, and only 20% of the housing stock currently meets class E or higher in energy efficiency. Older buildings consume up to 70% more energy than newer constructions, highlighting the scale of modernization required.

The aging of Spanish housing also has a direct effect on home-insurance claim frequency. According to ICEA (2024), there are already 40 claims for every 100 home-insurance policies, with a higher rate in older properties where the deterioration of materials, pipes, and electrical systems increases risks such as leaks, bursts, or domestic breakdowns. Renovating and improving these homes not only represents an economic opportunity but also a structural solution to reduce long-term loss ratios in the insurance industry.

The renovation market is booming

The home renovation and refurbishment market in Spain is experiencing solid growth. Nearly 1.9 million renovations are expected in 2025, up 1.6% from the previous year. This growth is driven by the affordability of renovations compared to new construction, the lack of available land, and rising construction costs, which have positioned second-hand housing as the main choice for buyers.

In 2024, used-home transactions reached 506,867 sales, the second-highest figure since 2007, accounting for almost 80% of all transactions. Each property sale typically triggers a renovation process, creating structural demand for rehabilitation and improvement services across the country.

Industry associations forecast that in 2025, more than 535,000 homes will surpass 18 years of age, joining the growing segment of dwellings considered “ready for renovation.” Combined with European sustainability goals, this scenario creates the perfect opportunity for insurers to play a strategic role in modernizing Spain’s residential landscape.

From claims management to home transformation

In recent years, many insurers have expanded their offering beyond traditional claims management, introducing value-added home services such as small repairs and installations. These initiatives aimed to diversify revenue streams and monetize home-insurance portfolios, supported by the rise of insurtechs that made complementary service models possible.

However, this approach has revealed operational and reputational limits. Low-cost services like minor repairs have become unprofitable in a context of inflation and labour shortages. Furthermore, customer perception has shifted — what was once seen as added value is now perceived as a “hidden handyman service,” reducing the insurer’s brand credibility.

The turning point: from repairs to rehabilitation

Forward-thinking insurers are now realizing that true value lies not in isolated repairs but in accompanying customers through the complete transformation of their homes. The future of this new business line is rehabilitation, renovation, and energy efficiency, a strategy that both enhances customer experience and reduces claims frequency through modernization of home infrastructure.

Wolly: the technological enabler for the insurance ecosystem

In this evolving context, insurtechs like Wolly play a key role as technological and operational enablers, providing the digital infrastructure, professional network, and management capacity insurers need to transition toward integrated home-service ecosystems.

Wolly, Spain’s leading insurtech for the home-services sector, already partners with more than 35 insurance companies, offering turnkey solutions that include the design and management of white-label home-service marketplaces fully aligned with each insurer’s brand identity. Supported by a nationwide network of over 20,000 certified multi-trade professionals, Wolly ensures end-to-end coverage for home renovations and installations anywhere in Spain.

“The insurance sector has a unique opportunity to lead the modernization of Spain’s residential stock,” explains the Wolly team. “Digitalization, sustainability, and customer-centric innovation are redefining the value of home insurance — turning policies into platforms for real transformation.”

Toward a new insurance model

The Spanish insurance industry stands before an unprecedented opportunity to drive residential modernization and sustainability.

The convergence of energy efficiency goals, digitalization, and changing customer expectations is reshaping the market and giving rise to new, service-based business models.

With the support of leading insurtechs such as Wolly, insurers can create integrated ecosystems that not only improve the customer experience but also deliver measurable reductions in loss frequency — proving that the future of home insurance is not just about protection, but about transformation.

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