Nationwide Partnership
Nationwide Improves Customer Acquisition and Reduces Water Leak Claims with Smart Home Solution
Nationwide Improves Customer Acquisition and Reduces Water Leak Claims with Smart Home Solution
About Nationwide
Since 1926, Nationwide has been an insurance industry leader focused on driving customer-focused innovation. Over the years, the carrier maintained that promise, developing products that its policyholders needed including: car, motorcycle, homeowners, pet, farm, life, commercial insurance; financial services; and health services.
Today, the Fortune 100 company and top-10 insurance company is one of the largest and strongest diversified insurance organizations in the United States. However, it stays close to its roots in its mission: to seek out innovative ways to always be on their policyholders’ side when they need it most.
The Challenge
Fresh off the heels of building a successful auto telematics app, Nationwide wanted a way to grow customer acquisition for its homeowner policies while reducing loss around its most costly home-related perils including water leaks, fire, and theft. The Product Lines Innovation team looked at traditional protective devices as a starting point, and realized they needed a partner with additional development resources and expertise to bring the smart home solution to market.
After learning that 64% of homeowners would be interested in using smart home technology if it helped reduce premiums, Nationwide partnered with Notion (a Pepper product offering) in 2020 to build an insurance smart home solution. Nationwide chose Notion because of its expertise in working with insurance carriers and their easy-to-use application, devices, and services that aligned directly with Nationwide’s challenge. Given it was a new endeavor for Nationwide, they also wanted a partner with willingness to test, learn, and optimize the offer for policyholders as the program grew.
The Solution
With the goals of customer acquisition and loss reduction in mind, Notion worked with Nationwide to build a smart home solution that featured Notion’s multifunctional sensors, an easy-to-use application and ongoing data insights. Simultaneously, Nationwide implemented a $50 discount, on average, for each policyholder who installed sensors, and began the process of rolling out the smart home program state-by-state.
In 2022 alone, Nationwide achieved big milestones in its customer acquisition and loss reduction goals: the program grew by 172% YoY with a 69%+ install rate. In addition, 85% of policyholders used at least one of their Notion smart home sensors to detect water leaks, enabling Nationwide to receive data on when and where those water leaks occur. With an industry average of $11,650 for a water claim, reducing the risk of these potential claims can quickly add up.
Results
- $50 on average saved per policyholder on homeowners’ premiums
- 69% install rate of Notion smart home sensors
- Estimated $11,650 saved per potential claim (national average)
- 85% of policyholders use at least 1 sensor to monitor for water leaks
- 172% increase in program growth YoY
- $50 saved per policyholder on homeowners’ premiums
- 69% install rate of Notion smart home sensors
- $11,650 saved per potential claim
- 70% reduction in water leak-related claim frequency
- 85% of policyholders use at least 1 sensor to monitor for water leaks
Smart home technology is putting homeowners in the driver’s seat when it comes to proactively monitoring their homes and properties. Since we started working with Notion, we have seen more homeowners leverage these solutions.
Sarah Jacobs
VP of Personal Lines Product Development
Smart home technology is putting homeowners in the driver’s seat when it comes to proactively monitoring their homes and properties. Since we started working with Notion, we have seen more homeowners leverage these solutions.
Sarah Jacobs
VP of Personal Lines Product Development
Notion for Smart Home Insurance
Notion is Pepper’s leading offering for smart home insurance. Pepper partners with insurance carriers to power their smart home programs with Notion’s smart sensor technology, easy-to-use application, and value-add services to help empower homeowners to proactively reduce loss and monitor for things like water leaks or smoke alarms, preventing small issues from becoming big headaches.
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