Offering homeowners insurance discounts is a tried and tested way to compete, stimulate sales, generate demand and even reach new demographics.
Win-Win Property Insurance Discounts
Many carriers want the benefits of discounting and are keen to offer consumers the policy discount incentives they crave, but they’d like to do it in a way that provides benefits to the brand and not just a low premium for the policyholder. For any brand that is looking for a discount program that can deliver benefits along the entire distribution chain — to their brand, sales distribution networks, agents and homeowners — insurtech products offer an intriguing solution.
Smart home products are highly desirable to consumers. Statista, a leading provider of market and consumer data, estimates household penetration of smart home devices will reach 40% in 2021 and close to 60% within four years. Leveraging these intelligent devices in the insurance market is new and exciting, and it allows carriers to tap into their popularity and high perceived value. Offering a discount for installation not only stimulates sales but will help to boost user adoption.
“I think insurtech products like those we offer at Notion are the key to strategic discounting today,” says Brett Jurgens, CEO and co-founder of Notion. “When you combine something highly desirable, like a smart device, with a homeowner’s insurance discount, people are no longer able to compare policies apples-to-apples. You’ve taken the policy out of the commodity space. The valuable user data these devices collect more than makes up for any discount you offer to stimulate user adoption.”
“When you combine something highly desirable, like a smart device, with a homeowner’s insurance discount, people are no longer able to compare policies apples-to-apples." -Brett Jurgens, CEO and co-founder of Notion
Notion makes a smart DIY monitoring system. This Internet of Things (IoT) company partners with top insurance brands to develop innovative new policies that incorporate smart home devices. Notion has developed several customizable partnership models designed to engage homeowners and help carriers attract and retain customers. Notion fully administers each program, so carriers don’t have to worry about draining internal resources to support the effort.
Benefits of Offering Smart Device Homeowners Insurance Discounts
Applying innovative and out-of-the-box thinking to discounting programs allows carriers to bring something new to the market that can’t be compared with a competitor’s products on price alone.
Carriers can still offer customers a discount, but now they get something in return. Homeowners have to install and use the DIY smart home device monitoring to qualify for the insurance discount. Carriers get access to a wealth of data they can leverage to learn about what happens behind closed doors, develop new customer-centered products and even evolve the way they calculate risk profiles.
In addition, because the Notion app alerts the policyholder about water leaks, sounding alarms, temperature fluctuations and open entryways, people are empowered to take corrective action quickly and avoid catastrophic risks — not to mention costly claims on their insurance policies.
By the same token, policyholders who enjoy the smart home product and all the services the policy offers risk losing valuable functionality if they change providers. So, these DIY monitoring devices can even extend the lifetime value of a customer.
The distribution network and sales agents benefit, too. Selling a policy that provides a free smart home device is new and worth talking about with their customers and prospects, and being able to offer a premium discount further sweetens the deal. Carriers can develop programs with variable discounts and policy terms to ensure compliance with each state’s Department of Insurance (DOI) rules and regulations.
The Bottom Line About Discounts
Unlike traditional discounting practices, bundling smart devices, homeowner’s insurance discounts and property insurance policies together in one product gives carriers a wide range of benefits. Partnering with an insurtech expert like Notion that has developed and tested a variety of models gives carriers everything they need to build an effective, goal-based program that can deliver an attractive return on investment.Visit Notion today to learn more about how combining smart home devices, DIY monitoring and discounts can grow insurance policy sales.