Sunnyvale, CA, – October 2, 2024 – Roost, the industry leader in property telematics, is proud to announce the groundbreaking results of its Home Telematics Program (HTP), a multi-carrier, multi-year program proving the actuarial impact of Roost’s property telematics solutions and their loss-reduction potential for the property and casualty (P&C) insurance industry.
Roost partnered with WTW (formerly Willis Towers Watson) as its data and actuarial analysis partner for this first-of-its-kind program. WTW played a crucial role in collating claims and sensor data from six participating carriers and conducting comprehensive analyses to quantify the impact of Roost systems in reducing water loss insurance claims.
The Home Telematics Program, spanning over five years and consisting of more than 175,000 policy years of data, yielded invaluable insights into the effectiveness of Roost Telematics solutions in mitigating risks and reducing claims costs. The Roost Home Telematics Program has created the largest Home Telematics dataset in the industry, encompassing participants from all 50 states.
The study results show that households with an online Roost water leak sensor have significantly fewer water leak claims compared to the control group. The sensors’ impact on claims costs was so substantial that the pricing model used in the analysis suggested these households can be offered a 15% pure premium discount for non-weather-related water leaks for installing a leak detector.
In contrast, other groups without an installed Roost water leak sensor had significantly more and larger claims than the control group. The pricing model indicated that these groups should be charged up to 66% higher premiums for not installing the sensor.
The study also demonstrated a significant improvement in policyholder retention for all groups that were offered a Roost sensor, regardless of whether they accepted the offer or not. The act of offering a Roost water leak sensor increased customer retention by 1 to 3%, with the greatest increases seen in households that accepted the sensor.
Key insights from the program include:
- Installation and Continuity are Key: Installation of the leak detection technology is important, but keeping the technology connected is critical to driving significant reductions in water leak and freeze related losses over time.
- Significant Claims Frequency and Severity Reduction: Providing exceptional ROI for insurers.
- Higher-Risk Self-Selection Bias Guides Program Deployment: Policyholders who opted into the program were shown to be a higher historic risk for water leak claims. Telematics programs should first target policyholders with recent prior water leak claims to maximize installation and result in the greatest potential claims savings.
- Offering Telematics Solution Improves Retention: An insurer offering a system (regardless of acceptance by the policyholder), enhances retention by fostering positive sentiment towards the insurer.
The results of the study show that shipping policyholders water leak sensors is not sufficient to impact claims. Roost’s comprehensive customer journey, tailored to meet each insurer’s needs, will ensure that the right policyholders are targeted and guarantee the Roost Telematics solution is properly installed and remains online (whether done as a DIY or as a professionally installed implementation). In addition to policyholder education and assistance, Roost services include periodic outreach to the policyholder to ensure constant connection and satisfaction with the solution. Roost also provides services for our carrier partners in preparation for potentially damaging storms and freeze events (ensuring that sensors are correctly placed, systems are online and ready to alert the policyholder and carrier of a problem).
“Based on our comprehensive actuarial analysis of claims, policy and sensor data from the Roost Home Telematics Program, we can confidently share the significant impact that Roost’s solution has on mitigating risks and reducing claims costs for carriers” said Charles Wolstein, Senior Director at WTW. “We are proud to have partnered with Roost on this seminal study for the P&C insurance industry.”
“The Home Telematics Program has provided unparalleled insights into the impact of Roost telematics solutions on the property insurance industry,” said Roel Peeters, Roost CEO. “We have proven that water leak sensors can effectively mitigate risks, reduce claims costs, and enhance customer satisfaction. This multi-year, multi-carrier study shows Roost’s long-term and unwavering commitment to partner with and deliver value to the P&C insurance ecosystem.”
About Roost
Roost is the industry leader in Property Telematics, dedicated to transforming the way homes and businesses are protected and insured. Their innovative solutions leverage advanced technology and data to provide proactive and personalized property protection, enhancing safety and peace of mind for property owners and providing rich data to insurers. Roost is focused on changing the way property insurance models assess risk and pricing on a real-time basis.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
Roost Contact:
Rachael Henry
Director of Marketing, Roost
(408)458-6209
