Helping policyholders reduce risk has always been a large focus in the insurance industry, but with the rise of IoT (Internet of Things) technology, insurers are in a better position to do this than ever before.
Indeed, beyond increasing customer engagement, providing data insights, and generating new revenue streams, IoT devices can be used as a preventative method within the home, sending homeowners alerts when something isn’t right.
Take water damage, for example. As one of the top causes of home insurance claims in the U.S., water damage costs insurers (and their policyholders) billions in losses every year. But it’s often water leaks that could have been proactively addressed – especially with IoT technology.
This is precisely where Notion’s smart DIY monitoring system can help.
By installing Notion Sensors near potential accident areas such as water heaters and washing machines, homeowners can be alerted to potential problems before they become costly disasters.
Similarly, Notion Sensors installed near UL-listed smoke and CO alarms will send homeowners an alert when the alarm sounds so they can take immediate action.
From reactive to proactive monitoring
While Notion’s smart home technology undoubtedly helps homeowners react more quickly to water leaks, sounding alarms, temperature changes, and other potential issues, it can actually help reduce policyholder risk in other ways too – namely, by making homeowners more proactive in the steps they take to prevent water and other damages.
Rather than simply reacting to a flooded basement in the aftermath, when a homeowner installs Notion Sensors on piping or near their water heater, they can detect leaks before they occur or before they cause too much damage. They can then address the issue without ever having to make a water damage claim.
In fact, Notion found that 84% of users didn’t monitor water before using Notion. And when users did install Notion Sensors in their homes, it resulted in a reduction of water damage claims for the insurer.
Clear benefits for insurers
While IoT technology can clearly help insurers cut costs by driving claim reduction, the benefits go well beyond.
For example, with the data collected through smart home programs, insurers can better understand their customers in ways they couldn’t before and quantify risk where it previously wasn’t possible. This can help insurers create better data-driven decisions around customization, strategy, and can even help cut costs across their business.
This is why so many insurance companies are now partnering with smart home companies to offer bundled incentives through IoT programs.
Notion (which was recently acquired by Comcast) has partnered with several of the top insurance companies in the U.S. to execute these kinds of programs.
In 2018, Notion and Hippo Insurance formed a partnership that marked the first time a U.S.-based insurance provider created a policy that fully integrated an IoT device and the data collected.
Through this smart home program, Hippo customers (in qualifying states) receive a complimentary Smart Home Sensor Kit when they sign up for the Hippo Insurance policy. And when customers install the sensors, they receive a discount on their home insurance policy.
More recently, Notion partnered with Nationwide Insurance to create an IoT program that allows Nationwide customers to purchase Notion’s Wi-Fi enabled smart home monitoring system at a special discount.
By purchasing Notion’s monitoring system, Nationwide customers are able to track real-time instances of water leaks or sounding CO2 alarms through their mobile devices and enjoy savings on their homeowners’ insurance policy.
As an insurer, the benefits are crystal clear. If you’re looking for opportunities to reduce policyholder risk, an IoT program could be exactly what you need.