Telematics and big data analysis have helped to determine that the safest drivers have a lifetime value of 3x compared to other drivers to insurers, and that the worst 10% of drivers are not profitable to insurers. These safe drivers can be determined by reviewing a few factors:

Those with no or very few claims.
Those willing to utilize a high deductible plan and pay for all lower-cost issues out-of-pocket.
Those with safe driving habits.
Those who are proactive about responding to vehicle maintenance issues.
Those willing to be measured by a telematics program and accept recommendations to improve their driving habits.

Telematics allows insurers to capture that data to determine driver profiles and driving behavior. When we translate that to a homeowner's property policy, the factors are similar:

Those with no or very few claims.
Those willing to utilize a high deductible plan to only insure against large, unforeseen occurrences.
Those with "safe" homeowner habits, locking doors/windows, closing garage doors, keeping home looking nice/neat to the neighborhood, etc.
Whether you have installed water softening systems in areas with hard water.
Those who are proactive about responding to home maintenance issues.
Those willing to be monitored by an IoT program and consider recommendations to improve their home safety, security, general upkeep.

Monitoring home systems

Those who are proactive about responding to property maintenance issues, consistently monitoring water usage, replacing worn HVAC systems, water heaters, batteries in smoke/CO detectors, worn-out appliances and having annual preventive maintenance inspections performed are the types of insureds that all insurers want. The next level up would be those homeowners that have automated sprinkler systems installed, have an automatic water shut-off device installed, have snow load devices installed on the roofs/gutters or hire professionals to perform an annual chimney cleaning, for example.

Special Reports /

How vehicle telematics predict the future for home insurance

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