Speaking to Insurance Business, Davies said Vivint intends to approach home insurance from a different angle, offering customers personalized home insurance products. “We are creating a pathway to innovative products, pricing and coverage by partnering with members of the insurance industry to implement our ideas,” he said.
Vivint’s unique position as a smart home technology provider can lead to innovative solutions for homeowners. “For each home loss, the consumer typically pays the first dollars of that loss through deductibles. We know that if we can demonstrate lower losses, it can lead to lower insurance premiums,” Davies said. “Our early studies and data indicate that we can influence claims costs. That’s why Vivint got into insurance.
Read more: Insurers will use smart home data to manage risk
Vivint’s smart home systems can notify people of a potential loss, allowing them to take action to prevent or mitigate further damage. “Our smoke detectors turn off HVAC systems to prevent smoke from spreading inside a home, while cameras actively deter crime by alerting intruders that they are being watched,” Davies illustrated. He stressed, however, that Vivint would maintain its focus on data privacy.
“We are just beginning to think about how to leverage these existing products as well as household data, to enable us, with consumer approval, to reduce risk and cost to the homeowner,” he said. he declares.
Davies also shared that Vivint Smart Insurance is developing a concept for “Homematics” – telematics, or usage-based insurance, for the home. Without going into too many details, the insurance director said he could identify some changes in risk through Vivint’s occupancy model.
Why an MGA?
For Davies, Vivint and the insurance industry already have a lot in common, which makes expanding Vivint as an MGA a good fit. “We both have substantial amounts of data and we have customers in common,” he said.
“I think Vivint is in a unique position to take insurance to the next level for several reasons, which center around our existing customer network. Whereas other companies install devices in a home so they can leverage data and turn their customers into a product, we take existing data and put it to work for our customers.
Vivint’s first step in their insurance journey was to rethink protection, and it started with conversations with their customers. Seeing strong interest in home insurance from its customer base, Vivint sought to leverage its claims cost data to improve pricing, underwriting or design of coverage, which it is now looking to incorporate into its MGA offerings.
Read more: Survey: Half of U.S. Households with Broadband Interested in Additional Insurance Services
Davies brings over two decades of insurance experience to Vivint. Most recently, he was President, CEO and Director of Safe Auto Insurance Group. During his nine-year tenure, he led the company from a founder-led company to a technology-driven industry player. Safe Auto was acquired by Allstate in 2021.
Prior to SafeAuto, Davies held a variety of executive and management positions with major insurance companies, including Allstate and Progressive Insurance, as well as smaller specialty businesses.
“It was obvious to me that the company had serious potential to redefine the way we think about home protection in the property insurance and security industry,” Davies said of his decision to join Vivint. . “It’s really exciting to explore more strategic industry partnerships that can lead to new market approaches and strategies.”
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