Startup InsurTech Award - Roost

1. Telematics for the Home
Roel Peeters
Co-founder & CEO
Peeters@roostlabs.com
+1(408) 623-7070
Spring 2018

2. Founded in
June 2014
HQ in Sunnyvale,
CA
Shipping since
November
2015
100,000+
data sensors sold
Confidential
Roost at a
glance
The Roost Home Telematics Platform
provides the end-to-end hardware, software and data solution
enabling the transformation of the Property Insurance industry
Strategic funding from VC and insurance investors
RPM, DCM, USAA, Aviva, DesJardins, Fosun

3. Major shift in Property Insurance business
Indemnification business  Protection business
• Mobile
• Cheap, connected sensors
• Cloud & Big Data
 IoT delivers finger on the pulse
of your home
• Increased consumer
engagement
• Direct loss reduction by
lowering fire/water damage
Technology Drivers
Strategic Implication
Confidential

4. • You will mitigate the situation • Roost will notify you so
immediate action can be taken
• Immediate, positive correlation
between response time and
size of insurance loss
• At less than $4/yr, immediate ROI on insurance fire peril
• Positive, on-going customer engagement
• Ideally suited for customer acquisition and retention offers
Roost Smart Battery Solution for Property Insurance
When you’re at home When you’re NOT at home
• $35 MSRP
• $10 replacement
battery
• Easy self-install
• 3-5yrs battery life
In case of fire event
Confidential

5. Roost Smart Battery Saves Upstate NY Home
ConfidentialConfidential
“We would have lost everything if it
weren’t for the Roost Smart Battery”
- Homeowner, Donna S.

6. Addressing $10B in yearly claims (US only)
• Most water leaks originate in specific locations
– Under sink, dishwasher, water heater, washer, etc.
• Freeze prevention – temperature sensor warns of
freezing conditions
Smart Water Leak & Freeze Detector
Mitigation for preventable leaks
• Includes temperature
& humidity sensors
• Leverages Roost app
and notification service
• Cost-effective solution
Confidential

7. Home Perils cause $42B in annual claims (US)
Fire Water Leaks Wind Rain Theft
Severity: $43,983
Frequency: 0.35
Severity: $8,861
Frequency: 2.13
Severity: $8,313
Frequency: 2.86
Severity: $3,990
Frequency: 0.42
$42B in Annual Claims (US only)
$9.8B $9.6B $16B $1.2B
Sources: http://www.iii.org/fact-statistic/homeowners-and-renters-insurance - weighted average claims 2011-2015 in the U.S.
80 million US insured Households by 100+ carriers
Confidential

8. Roost Transforms Insurance Pricing
“Claims-based post-factum analysis of risk
factors”
• Focus on resulting claims
• Top-down – narrowing risk pools:
– Correlated properties
– Credit score
– Home characteristics at time of policy
“Risk decomposed based on actual perils”
• Focus on prevention & mitigation
• Bottoms-up:
– Individual, unique property characteristics
– Actual user and occupancy data
– Continuous monitoring of peril-related data
– User prevention behavior
Funding originates from the Underwriting budget
Yesterday’s Home Insurance Tomorrow’s Home Insurance
Confidential

9. Roost Transforms the Customer Experience
• Communication channel is often
limited to snail-mail
• Customer interaction limited to
pragmatic or negative events
– New policy set-up
– Claims processing
– Billing upon policy renewal
• Joint responsibility for safety by
minimizing peril events
• Enables digital mobile connection
• Positive engagement leading to:
– Greater lifetime value of your
“connected” customer
– Increased loyalty and higher customer
retention
Funding originates from the Retention/Acquisition budget
Yesterday’s Home Insurance Tomorrow’s Home Insurance
Confidential

10. Objective: Increase policyholders engagement
through mobile-first strategy
Desjardins Pioneering Smart home with Largest IoT
Deployment
All Desjardins policy holders are eligible
for a free Roost Smart Water Leak Detector
• Desjardins Insurance
Group
• 2nd Largest Insurance
Company in Canada
• 4M policy holders
Confidential

11. “Home Telematics Program”
•Do smart home sensors mitigate claims costs and by
how much?
– 5-10 Insurance carriers participate to share data capture of 70K+ HH
– Willis Towers Watson manages data analytics
– 7K “Home Protection Kits” distributed per carrier
– $595K investment
•What is the impact of “Home Protection Kits” on
policyholder engagement?
 Loss mitigation
 Self-selection risk impact
 Retention & customer acquisition
 Brand affinity
 Net promoter score
 Best practices in policyholder outreach
Confidential
Partnering with:

12. Roost is your ideal Smart Home partner
Why Roost?
Well-rounded product portfolio
Experienced, proven team
Recognized thought leadership
Highly reviewed products, shipping in
volume
Single-minded focus on helping the insurance
industry take advantage of the IoT revolution