smart home and insurance: partnerships and go-to-market ......insurance discount for canary, adt...

www.parksassociates.com © Parks Associates 1

Smart Home and Insurance: Partnerships and

Go-to-Market Strategies

February 121:00 PM CT

Sponsored by


Speakers

Shawn BarryVP, Strategic SalesAlarm.com

Silvia MadrigalInsurance Business Development ExecutiveSilicon Labs

Brad RussellResearch Director, Connected HomeParks Associates


Parks Associates invites you to view and listen to the webcast recording.

Click link to view recording: https://attendee.gotowebinar.com/register/218913161157419521

Webcast Recording Playback

https://attendee.gotowebinar.com/register/218913161157419521


Introductions

Parks Associates Research Opportunity Drivers for Smart Home and Insurance; Consumer Preferences for Incentives, Data Sharing and Services; Partner Ecosystem and Decision Points

Silicon Labs Value of Ecosystems of Compatible Products to Address Use Cases for Fire, Water, and Theft

Alarm.comConsiderations for Platform Services to Fulfill Distribution and Data Aggregation Tasks

Panel Discussion

Audience Q & A

Agenda – Smart Home and Insurance


Marketing & Sales

Underwriting & Risk Rating

Claims

Customer Service

Product Development

Opportunity Drivers for Smart Insurance

Benefits for Core Insurance Functions• Improve acquisition and retention

• Personalize policies and pricing

• Reduce risk and minimize losses

• Lower claims processing costs

• Deepen customer engagement

• Create new revenue streams

• Enhance brand positioning and differentiation

• Inform product development and customer segmentation


Opportunity Drivers for Smart Insurance

Consumer Demand Drivers• Strong interest in IoT devices with prevention and

detection capabilities for fire, theft, and water damage• A growing installed base of devices can provide data

for insurers through BYOD programs• Prior experience of a loss heightens this interest• Prices for smart home devices are coming down• Technology is becoming more reliable• Voice control and unified apps are simplifying the user

experience


The Growing Device Numbers

32%

Own anyConnected

Device

24%

Own a Specific SmartHome Device

10.5

Average #Connected Devices

Per Household


Consumer Interest in Insurance IoT Solutions

60%Interested inwater, fire,

or theftdevices

75%Purchase intenders

willing to sharedata automatically

with insurers

40-50%Interested in

additionalservices

from insurer

40%Would switch

providers to getsmart home

products


Prior Loss Effect

0%

20%

40%

60%

Electrical wiringfire

Electricalequipment fire

Heatingequipment fire

Cooking fire Fire fromflammable

liquids

Barbecue grillfire

No history of fire damage Experienced fire damage

Likelihood of Buying Fire Notification Product: Households that have experienced fire damage versus those that have not

Among 79% of U.S. broadband households with home or renters insurance

% R

atin

g "V

ery

Like

ly“

to

Buy

Pro

duct

that

Can

D

etec

tFire

Haz

ard


Automatic Insurer Notification


Preferred Incentive


Interest in Services

0%

20%

40%

60%

A restoration servicethat repairs your

home after damagehas occurred

A home warrantyservice that covers

all homemaintenance

A home maintenanceservice to keep your

home in topcondition

Recommendationsfor making your

home safer

A home maintenanceand safety evaluation

Proactivecommunication of

potential risks

Very interested (Rating 6-7) Interested (Rating 5)

Interest in Other Services from Current Insurance ProviderAmong 79% of U.S. broadband households with Home or Renters Insurance


The Innovation Halo

0%

25%

50%

A restorationservice that repairs

your home afterdamage has

occurred

A home warrantyservice that covers

all homemaintenance

A homemaintenance serviceto keep your home

in top condition

Recommendationsfor making your

home safer

A homemaintenance andsafety evaluation

Proactivecommunication of

potential risks

Disagree with "My insurance company is innovative" (Rating 1-4)(48% of Subset, n=1,886, ±2.26%)

Agree with "My insurance company is innovative" (Rating 5-7)(52% of Subset, n=2,063, ±2.16%)

Interest in Other Services based on Impression of Current Insurance ProviderAmong 79% of U.S. broadband households with home or renters insurances

% R

atin

g "V

ery

Inte

rest

ed"


Insu

ranc

e Io

T Ec

osys

tem

© Parks Associates


Silicon Labs


Silicon Labs: The Leader in Wireless IoT Connectivity


Increase Engagement, Attract New Customers, Acquire IoT data, ID lower risk profiles

Co-Marketing: campaigns & special pricing

Discounts: on devices & insurance premium

Free Devices: smoke and water leak sensors

Venture investments: partner for disruption

Employee trials: deploy devices & gather data

Pilots: trial with 1,000-10,000 homes

Smart Home and Insurance Programs


offering complimentary Notion kits to customers that opt in

insurance discount for Canary, ADT (Alarm.com), Nest systems

invested in LeakBot and partnered with Alarm.com to sell products & services with the Aviva Smart Home app

invested in Ring, and provides discounts on Nest and Frontpoint (Alarm.com) systems

invested in August Home, and provides discounts for Vivint, Nest Protect, and others

ADT (Alarm.com) partnership for lead generation/referral, and discounts for Nest Protect, and SmartThings

insurance discount with Amazon.com smart home kit purchases that works with Alexa and free Echo Dot

SimpliSafe co-marketing partnership

Current Insurance Partnerships


Silicon Labs’ Value

Silicon Labs: Introductions to Ecosystem

100s of partners: Service providers & hardware manufacturers

Proven: 100M Z-Wave devices deployed

Interoperable: Over 2700 certified devices

Security: best in class hack-proof S2

Smart Start: New plug and play functionality


Select a Platform

• IoT cloud-hosted AI

• App / user-interface

Get Started with 3 Simple Steps

1STEP

Select a Dealer/Partner

• Back-end admin

• Manage subscriber accounts

• Inventory management

• Technical/customer support

• DIY or professionally installed

• Data analytics

2STEP

Select connected devices

• Insurance Appeal

• Consumer Appeal

3STEP


Water Damage Mitigation

Scenarios of Real World Applications

Security Smoke/Fire/CO

Scenario 1

• Allow access to emergency responders

• Peace of mind with status updates


Water: 45% of losses. 2% of insured homes each year, averaging $8,861 • Sensors – sense temp for freeze warning

• Shut-off valves

Security/Anti-Theft: 2% of losses. Average loss is $4,000• Security systems, sensors, cameras, video doorbells, door locks, and garage door openers

Fire: 24% of losses. Average loss is $43,983. Only occur for 0.35% of insured homes annually • Connected fire and smoke alarms, and automation with other connected devices, such as

thermostats, door locks, and fans

Reduce Losses Proactively


Incorporate Predictive Analytics with AI • Detect pipe health to mitigate water loss

• Connect oven and thermostat to avoid fire

• Security sensor unusual behavior to protect home

Smart Home Devices at the heart of all these activitiesFirst Mover Advantage

Why Should you get involved now?

What is Next?


Alarm.com

Copyright © Alarm.com 2019

Founded in 2000

Cloud-based SaaS Platform

Invented Interactive Security

Largest Smart Home Platform

Global Service Provider Network

NASDAQ: ALRM

About Alarm.com

Our HQ in Vienna, VA


Confusion with Point Solutions

Limited Value with Data SilosSecurity Concerns

Thermostat

BRAND C

Water

BRAND F

Security

BRAND G

Garage

BRAND E

Camera

BRAND D

Light

BRAND BBRAND A

Lock


Thermostat Water SecurityGarageCameraLightLock

BRAND C BRAND F BRAND GBRAND EBRAND BBRAND A BRAND D

Confusion with Point Solutions

ONE PLATFORM

SUPPORTING

YOUR BRAND


Largest Platform for Intelligently Connected Properties

Million Subscribers5.5

MillionConnected Devices80

100 Billion Data Pointsin the last year alone

OVER


Claim Analysis Process

CustomerSubmits

a theft claim

Powerful Tool for Insurers Enabling Verification or Dispute of the Claim

InsurerReceives the claim

Insurer’s Claim Analyst

Logs into Dealer Website

Customer’s System History– Alarm went off –

– Door was open without permission –– Upstairs motion triggers –

Collect any video and/or photos triggered by the Image Sensor in the customer’s home a day

before and after of the specified date in customer’s claim

Follow Up With CustomerDetermine if the claim was fraudulent or accepted


Comprehensive

Insurance SolutionsData from the Home


Benefits for All

Fire Water WellnessTheft


The safety belt for your life.

The system that grows with your family.


BUILDER PROGRAM

MULTIFAMILYRESIDENTIAL CONSUMER MARKET

COMMERCIAL HEALTHCARE

MARKET


B e n e f i t s

AUTOMATED COMPLIANCE REPORTS

Verification that customers honor the deal

STICKINESS

With term contracts and more touch point

with the customers

LESS CLAIMS

With water sensors, shut-off valves, etc.

EASIER CLAIMS PROCESSING

With more and easier accessible information

LESS FRAUDULENT CLAIMS

Preventive effect of information disclosure?

I n R e t u r n

THE FINANCIAL INCENTIVES

Strong recurring revenue model

BRAND IN APP

Associated daily with the things they love most

OPERATIONAL INVOLVEMENT

With Alarm.com, you have turn-key solution ready to be

implemented immediately.

Benefits for the Insurer


Panel Discussion


Panel Discussion

Shawn BarryVP, Strategic SalesAlarm.com

Silvia MadrigalInsurance Business Development ExecutiveSilicon Labs

Brad RussellResearch Director, Connected HomeParks Associates


Questions?


Brad RussellResearch Director, Connected Home

[email protected]

WWW.PARKSASSOCIATES.COM

Thank You

smart home and insurance: partnerships and go-to-market ......insurance discount for canary, adt...

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