Neos demonstrates value of smart home insurance – improving overall loss ratios by 29%.
As the UK’s first smart home insurance provider, today we’re so proud to reveal how our insurance and preventative technology solution reduces the overall loss/claims ratio by 29% – and up to 35% for escape of water alone.
With insights shared for the first time, we’re demonstrating the value our tech-led offering is bringing to customers and the wider industry. Escape of Water incidents in particular, which results in £1.8 million being paid out by insurers daily, see claim ratios reduced by 35% when customers use preventative smart home technology as part of their insurance package.
Here at Neos, we’re empowering customers to take charge of their own property security by alerting them to oncoming threats before the damage is done. Research earlier in the year from Neos showed 6 out of 10 of the 2,000 UK adults polled confessed smart technology makes them feel safer, with 66% saying it increased peace of mind. More than half also said they thought smart home insurance provided more value than traditional home insurance.
Founder and CEO of Neos, Matt Poll said,“Our Smart Home Insurance is fundamentally proving smart home insurance policies are helping consumers avoid preventable damages and giving them peace of mind’.
“By notifying users of unusual activities before they turn into real and costly damages, we’re showing that unlike traditional home insurance, a proactive approach to insurance is more beneficial to both policyholders and insurers themselves. Our all-in-one platform enables customers to access their policy and keep an eye on their home whenever and wherever they like.”
This ‘real-time’ accessibility translates into higher customer engagement levels and retention rates for Neos. On average Neos’ customers engage via the app 1.5 times a day. In comparison, traditional insurance customer cycle sees insurers only have 2-3 main interactions with customers in one given year e.g at purchase and renewal.
This is all amounting to an increased customer retention rate of 7% for customers with comprehensive smart technology included in their bundle VS. those who don’t. Neos also has an ‘Excellent’ score on Trustpilot and a Net Promoter score of +76/100.
On customer service Matt said, “Customer service and satisfaction is at the heart of our operations. We offer exceptional customer support directly within the app, with a response rate averaging 4min.
“We also provide a monitoring service, so if you can’t respond to an alert, then our team is on hand 24/7 to inform you or your emergency contact of any potential problem in your home. If the problem requires emergency assistance, they can also send out a relevant tradesperson to fix the issue.
“We believe in providing value to our customers throughout the term of their policy and for us that means embracing technology. There is no question that the traditional structure of providing home insurance is outdated – Smart Home policies are the future of insurance and we’re really proud to be leading the way.
“The value offered by smart home insurance goes far beyond the initial cost of the premium. By providing preventative technology, such as smart cameras, sensors, smart smoke alarms and smart leak detectors, as part of the insurance policy, Neos brings value to all customers, not just those who need to claim. This technology also enables us to remain front of mind for our customers through multiple daily interactions increasing our retention rate – it’s a win win all round.
“In 2020, we are excited to be able to help even more customers access the value of connected home insurance through supporting leading insurance brands.”