Home Security Services: The Realistic Starting Point for ...… · ADT Proprietary & Confidential Page 10 Home telematics leverage ADT behavioral data ~90 Million ~2 Billion Arm

Page 1ADT Proprietary & Confidential

Home Security Services: The Realistic Starting Point for Connected Homes

November 2019

Ken Porpora, Chief Growth Officer


Key topics

1. The benefits of a connected home are still untapped

2. Security & smart-home companies and insurers have a long history of working together

3. Why the time is right to work together to build a Connected Future

Learn more by contacting Jeff Barnes @ [email protected]


Customers are asking for connected home products

Source: Parks & Associates “Smart Home and Insurance Partnerships and Go-to-Market Strategies”: February 2019

60%want water, fire, or

theft devices

75%will share data with insurers

40%would switch insurers for

smart home products

~50%want connected home

from insurers

and a recent survey of insurance buyers proves it



48 millionhave a smart device

26 millionhave security

85% / 15%Pro vs self installed

The market for “connected home” is large & growing

75 millionwill have a smart

device

32 millionwill have smart

security

65% / 35%pro vs self installed

Source: Parks & Associates “Smart Home and Insurance Partnerships and Go-to-Market Strategies”: February 2019

Today…

2024



ADT is well positioned to capitalize on this market

54%of consumers named ADT

“best brand”

95%unaided brand awareness and

36% brand preference

3m +Connected homes

7m +Customers

2mAnnual service events

3kSecurity advisors

#1 in U.S.

~200Local offices

9 UL certified monitoring

centers18k

Employees

Same-day /Next-day

In-home service

24/7/365Service & monitoring



ADT is the #1 connected home security provider


Over 1,000 events have been conducted since 2011; $5M+ donated to first responders

ADT’s LifeSaver program celebrates how lives are saved thru our services

Humanizing the connection…

We protect and connect what matters most

7Learn more by contacting Jeff Barnes @ [email protected]


Over 25 years experience w/ insurance partners

1995 2010 2015 2016 2017 2018 2019

1st Home Telematics data

compare

Partnering with Risk Consultants

Offering ADT to policyholders

Auto security verification &

direct data sharing



In-home customer data can help insurance companies better serve policyholders

• Automated security monitoring discount verification

• Mitigate claims losses

• Match individual risk with premium

• Promote security and connected home



Home telematics leverage ADT behavioral data

~90 Million

~2 BillionArm / disarms 200

BillionMonthly app

loginsSystem events

annually

~200 MillionDoor locks

~8.5 BillionVideo clips

~700 MillionThermostat

~200 MillionLights



Actuaries built risk model to identify correlations between ADT customer data and claims losses

7.5% better loss experienceidentified in a subset of ADT customer data

Case Study 1: Proving value of in-home data

Top 10 carrier compared claims history with ADT data using a third party to anonymize and combine data sets

3 elements found to be most predictive of claims

Confidence was highthat model can predict homeowners risk potential



Case Study 2: Applying home telematics learnings

Automate discount verification

• ADT customers opt in to share data

• APIs validate connected home security

Correlate in-home behaviors with claims

• Customer records matched by 3rd

party

• Actuaries identify factors which predict losses

Increase policyholders with ADT service

• Getting insurer’s customers on ADT allows scaling

• Insurer markets to existing & new policyholders

Match premiums/ discount to risk

• Share key loss data on matched customers

• Insurer prices h/o policies based on in-home data



1. Automated security monitoring validation

2. Turn-key introduction of Connected Home to policyholders

3. Opportunity to predict claims losses

Connected home is right at your doorstep



Lets talk about how we can help build a smarter home for your customers

Ken Porpora

Chief Growth Officer

[email protected]

Jeff Barnes

Director, Affinity Partnerships

[email protected]

Documents

Home Security Services: The Realistic Starting Point for ...… · ADT Proprietary & Confidential Page 10 Home telematics leverage ADT behavioral data ~90 Million ~2 Billion Arm