XL Catlin and Liberty Mutual are among the backers of a new startup focused on developing Internet of Things-related home security technology, with an eye on reducing property damage risks.
The insurers’ venture capital arms – XL Innovate and Liberty Mutual Strategic Ventures – contributed to the $3.2 million seed funding-round for Notion, a startup that is developing an Internet of Things-centered “home awareness system.” Notion’s initial product is a multi-function sensor that can identify temperature changes, smoking alarms going off and the opening of doors and windows, among several other capabilities, according to the deal announcement from XL Catlin.
Notion’s sensor would take about 5 minutes to set up and sends alerts to homeowners by way of a mobile app. The Denver-based startup has sold more than $500,000 worth of its devices and shipped its initial crowdfunded preorders as of May, the announcement noted. Right now, Notion sells its products in the U.S., Canada and some European countries.
Typically, home security systems cost $2,500 on average over a 3-year contract, but Notion said its sensor system starts at $129, covering break-ins as well as water leaks.
Martha Notaras, a partner at XL Innovate, said that the technology will help homeowners with their insurance costs and be transformative for the property insurance industry.
“Simple, reliable sensors that are easily deployed and capable of capturing relevant data can lead to a significant prevention of property damage,” Notaras said in prepared remarks. “Homeowners benefit by having 24/7 insight into the health of their home and insurers can offer loss reduction initiatives.”
Liberty Mutual Strategic Ventures is a part of Liberty Mutual Global Consumer Markets, and it officially debuted just a few weeks ago. LMSV is a $150 million early stage venture fund with a focus on innovation in the connected home, next-generation vehicle and sharing economy technology. Its initial investment was with August Home, a provider of smart locks and home access products and services billed as making life easier and more secure.
XL Group/XL Catlin formally launched XL Innovate in April 2015. Its recent investments include contributing to a $12.2 million venture funding round for Embroker, a startup focused on automating the insurance broker experience for small and midsize business owners.
Source: XL Group