By Drew Doleski, Verisk Insurance Solutions
Two exciting opportunities are available to help security- and alarm-system providers find additional value from their data, and potentially expand insurance discount benefits to their customers, thanks to Verisk’s ongoing partnership with Central Station Alarm Association International (CSAA).
CSAA-affiliated system providers can participate in a CSAA-Verisk study that evaluates whether deeper insurance discounts are warranted for their customers beyond the ‘check box’ discounts provided today. System providers will also have an opportunity to participate in Verisk’s data exchange solution for the confirmation of current, active alarm systems. Homeowners insurers who participate in the exchange will be able to verify if a customer has an active monitoring subscription. This will potentially create additional recurring monthly revenue (RMR) opportunities for system providers and could also improve system retention rates by triggering deeper homeowner policy discounts that would make retention more attractive.
Insurance industry aggregate discount study
Now underway, the insurance research study will develop insights that help insurers determine the extent to which discounts should be adjusted to truly reflect the benefits of alarm systems. The analysis draws from the combined alarm system data contributed by the industry, as well as from Verisk’s proprietary policy and claims/loss records that span the United States homeowners market. Verisk will provide advisory information to insurers and insurance regulators that supports discount-level adjustments within the industry.
Status of the study
- Verisk and CSAA have finalized the process to securely encrypt and transmit necessary alarm company data and are ready to begin the analysis.
- Two companies, Vector Security and Alarm Detection Systems, have signed on to participate in the research initiative.
- CSAA-affiliated alarm system providers are encouraged to support the study by contributing information—data volume matters and we need the support of the full industry!
Alarm system data exchange
Verisk is partnering with alarm companies to create a database that matches alarm system subscriptions with homeowners insurance policies. Insurers, who seek accurate and timely information on households, use this database to systematically verify that customers qualify for alarm system discounts. For every match, participating alarm companies receive a royalty for the use of their data.
“The potential benefits of participating in the exchange for alarm companies are decreased attrition and boosted RMR,” noted Pam Petrow, president of CSAA. “Interested members are encouraged to reach out to Verisk.”
The Verisk team will attend CSAA’s Annual Meeting in October and looks forward to meeting and speaking with anyone who wants to learn more about Verisk’s CSAA initiatives. For more information, please contact Drew Doleski, product manager for Internet of Things and the Connected Home, at firstname.lastname@example.org.