Purpose of Purple Ant
Purple Ant is an idea whose time has come - We help Insurers be more effective by applying technologies such as IOT and Machine Learning. We believe that carriers are always looking for innovative ideas to help improve insured acquisition/retention and improve loss prevention.
Why is this important?
There is no brand stickiness within P &C industry. Right now, insureds interact with insurers twice – once while buying or shopping for policy, and second when there is a claim. While buying may or may not be a positive experience, a claim is a negative experience irrespective of how long it takes to close. Carriers are looking for ways to have insureds engage with them in a way that provides for a positive experience. Home Telematics is a great opportunity for carriers to provide that positive experience.
What can we do?
Today most carriers insure the property and not the property owner – that’s because there aren’t many ways to measure how the insured maintain their property. If they did, they could factor that in their underwriting algorithm. While devices like Nest, Alexa add-ons, and security options like ADT are all somewhat indicative of insured behavioral pattern, there is no way for the carrier to get that data. Home Telematics solves this challenge.
What if we could incentivize the insured to activate the devices in return for a credit and have the Insurer deploy the devices at a cost that’s less than the premium that they collect? Outcome then will be a win-win !
It is a win for Insured because they pay nothing but get a credit and a technology providing peace of mind while they are away from home.
It is a win for Insurer because it is affordable (no capital cost, a small monthly fee) and results in higher NPS, which in turn leads to greater retention. There is an added benefit of reduction in damage caused by water leaks since we are able to detect them in real time and mitigate the situation.
Once we have collected a lot of data we can then feed that into machine learning software that can further enhance the actuarial algorithms and make underwriting ‘smarter’.