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Sensors definitely increase the acquisition costs, although at least early on there's customers who see them as a benefit they're willing to trade the usual cas
by jon-wood 9y ago
Sensors definitely increase the acquisition costs, although at least early on there's customers who see them as a benefit they're willing to trade the usual cashback/discounts/etc for, so its not as bad as you might think. We're also looking at ways to reduce the cost of sensors over time.
As for proving that sensors mitigate losses, even in our initial beta period we've seen a couple of potentially large escape of water claims avoided by early detection of a leak, and that's before we start introducing truly preventative measures as opposed to just detection. We're very focused initially on escape of water because those are in fact the largest source of losses in the industry - fire is fairly rare, theft tends to be pretty cheap to handle claims for, but a leaking dishwasher left while someone is at work for the day can easily require replacing everything on the ground floor of a small house.
- rayhano 9y agoSo I wanted to try Neos after meeting a Zoopla exec who said they had invested. But when the premium came out at over 4x my existing renewal quote I became less enthused. And then I saw the Excess Charge (for making a claim) was £1,000 vs the £250 norm, I ran away to the nearest comparison site to find vanilla home insurance. I think the conversion process might need looking at to make the benefits less nakedly focused on cost.
- jon-wood 9y agoGive us another go in a few weeks - our initial trials we were partnered with Hiscox, and were bound to only their (really expensive) policies. We're now in the final stages of rolling out our own policies which are much more competitive - quoting on my own house has our policies coming out cheaper than my current home insurance policy, with much better service.
- rayhano 9y agoAwesome, looking forward to using something that adds value beyond 'invisible protection'
- rubyfan 9y agoAre you able to completely offset the sensor costs against the loss avoidance? Do actually observe a different risk profile in the type of customer willing to pay for a proactive service?