Speaking to Insurance Business, Davies mentioned Vivint intends to method dwelling insurance coverage from a special angle, delivering custom-made householders insurance coverage merchandise for patrons. “We’re creating a path to innovative product, pricing, and coverage protection by partnering with members of the insurance industry to implement our ideas,” he mentioned.
Vivint’s distinctive place as a sensible dwelling know-how supplier can result in revolutionary options for householders. “For every home loss, the consumer generally pays the first dollars of this loss through deductibles. We know that if we can demonstrate lower losses, this can lead to lower insurance premiums,” Davies mentioned. “Our first studies and data indicate we can affect loss costs. That’s why Vivint has entered insurance.”
Read extra: Insurers to make use of knowledge from sensible properties to handle threat
Vivint’s sensible dwelling techniques can notify individuals of a possible loss, permitting them to take steps to stop or mitigate additional injury. “Our smoke detectors shut off HVAC systems to prevent smoke from spreading inside a home, while cameras actively deter crime by signalling to intruders that they are being observed,” Davies illustrated. He confused, nonetheless, that Vivint would preserve a deal with knowledge privateness.
“We are just starting to think through how to leverage these existing products along with household data, to enable us, with consumer approval, to lower the risk and costs to the homeowner,” he mentioned.
Davies additionally shared that Vivint Smart Insurance is growing an idea for “Homematics” – telematics, or usage-based insurance coverage, for the house. Without giving too many particulars, the chief insurance coverage officer mentioned that they’ll determine some threat modifications by means of Vivint’s occupancy mannequin.
Why an MGA?
For Davies, Vivint and the insurance coverage business have already got quite a bit in frequent, making Vivint’s enlargement as an MGA a superb match. “We both have substantial amounts of data, and we have customers in common,” he mentioned.
“I believe Vivint is in a unique position to take insurance to the next level for a few reasons, which center on our existing customer network. While other companies put devices in a home so they can leverage the data and turn their customers into a product, we take existing data and put it to work for our customers.”
Vivint’s first step into its insurance coverage journey concerned rethinking safety, and that started with conversations with their clients. Finding robust curiosity in dwelling insurance coverage with their buyer base, Vivint sought to leverage their loss prices knowledge into bettering pricing, underwriting or protection design, which it now seeks to include into its MGA choices.
Read extra: Survey: Half of US households with broadband serious about extra insurance coverage companies
Davies brings greater than twenty years of insurance coverage expertise to Vivint. Most lately, he was the president, CEO, and director of Safe Auto Insurance Group. During his nine-year time period, he led the enterprise from a founder-led firm to a tech-driven business participant. Safe Auto was acquired by Allstate in 2021.
Prior to SafeAuto, Davies held numerous government and management positions with main insurance coverage companies, together with Allstate and Progressive Insurance, in addition to smaller specialised firms.
“It was obvious to me that the company has serious potential to redefine how we think about home protection in the insurance and property security industry,” Davies mentioned of his choice to hitch Vivint. “It’s truly exciting to explore more strategic industry partnerships that can lead to new approaches and market strategies.”