Vivint 'Smart' Home Insurance Examined
While Vivint is best known for selling security and solar door-to-door, the company is aiming to expand into home insurance sales.
In this report, IPVM examines Vivint's Q4 2021 results earnings call and a company presentation during InsureTech Connect's Las Vegas conference to evaluate Vivint's plan.
Growing *** ********* **** *********
*** *******, ***** ***** ******** **** insurance ** ****, ******** ******* "****** 7,300 ********* ******** ** ****," (* tiny ******** ** *** *.* ******* subscribers) **** ****** ********* ******** ************* as **** ** *** ****. **************** ***** ******* **** ************** ********* *** *** **** *** years, **** *** ********* ********* **** filled ** ****, ************,*** ** ***********,** ** ******** *********, ******** ******/********** *******.
** ******** ** ****** ** **** initiative *** ***hiring ******** ********* ********** ** **** ** ***** *** *** ********* to become a managing general agent, or an MGA, which will allow us to develop specific home coverages for our customers and enable us to continue to grow smart insurance in 2022 and beyond. [emphasis added]
'$600 ******* ***********'
****** **** ** **** ** *********** to "********** ******* *** ********" *** gain * ***** ** *** $*** billion ******:
*** ******** *** ******** ****** ** a $*** ******* *********** **** *** been ******* ** ****-**** ********** ******** for *** **** *** *****. ** believe **** ** *** ** **** solution *** **** ** *** ********** disrupt *** ******** *** ***** ****** and ******** ***** *** ** *** integrated ********* ** *** ****.
** ********, ******'* **** ****** ******* was $*.* *******, */***** *** **** of *** ****** **** *** ** expand ****.
Double ****** ******* *** ****
******* **** ********* ***** ****** ******'* revenue *** ****. *** *******, ****** averages $**.** ** ******* ********* ******* per **** ********* ***** **** ********* policies ******* ***** ****** ** **** in *** $*** ** $*** ******* range. ** **** ***, *** ***** Vivint's ******** ** ****-**-**** *****, **** could ******** *********** **** ******* *** user.
Thin ******* *** **** *********, ****** ********** *** ******
*** ************* ** **** ********* ********* has **** ********* *** *** **** ten *****.** ******** ************ ****** *** **** of ******* **** ********* ********** ********* trends ** **** *** ********* ******** calls ******** ******. *** *********’* *********, these **** **** ****** *** *** past *** ***** ****** *** ********, indicating ********** ****** ******* *** **** insurance *********.
**** **** ******** ********* ********** **** a *** ********* ********* ** ****** home ********* ************* *** ******* ******’* expansion ** **** ********* ***** ************* change ***** **** *****. ** ***** that *********** *********, *** *******, ******** with * *******-**** ****** ****** ***** taxes ** ************* **%.
******, **** *** *.* ******* *********, currently ******** **** ** ****** *** loss ** $**.* ******* **** ** average ******* ********* ******* *** ******** of $**, *** *** *-* *** filing. ******* **** ********* ** ******** to *** ******* *,*** ********, ** could ***** ** ** ** ** the ******* *** **** ****** ** customers. **** **, **** ******* ** the *** ***** ** ****, ********** profits ***** *** ****** ~* ******* dollars.
A *** ********* *********, ********* ***, *** ****
****** ********* ****** ************* *******'* (***) *** ***** ********** ** October ****, ********* *** **** **** to ********** ** *** ************* *** presents ** *** ********* ********.
******'* ********* **** **** ****** *** one-hour ****, ****** ********* ** ******* events ** *** ***** *** ********* 116 ******** *****-**** ******* (******* ****** doors, ******* ****** ***, *** ***** actions **** ********* ***** ****, *** example).
****** **** *** ******* ***** *** the ******* ******* ** ******* *** large ****** ** **** ** ** collecting.
Vivint ******** **** ****** *** *******
******'* *** ***** ************ **** ******* that ***** *** ** ******* ** 14.8 ** *** ******* *** *** 1.8 ******* ***********' ***** *** **** the *******'* *** ******** ** **** per *** *** **********. *** ********* also **** ****** *** "**% ******** coverage ** *** ****."
Tenuous ******** ** **** ********* *********
*** ******* ****** **** ****** ***** are **** ***** ** ******* ***** of *********-******* ******. *** *******,*** ****** **** ******** ******* ******** ** ***** **** ******* enters * ******** *********, ***** *** company ****** ******** *****.
* ****** **** ***** ** **** prone ** ******* *****, *** *** connection ******* *** **** *** ************* disasters (***** ********** ** ******* ** tornadoes ** ********), ***** **** ************** and ********* **** ********* ***** ************* state ** *****, ** *******.
** ******* ** ** **** ** these **********, **** ******* **** *** data, ***** ******* ** **** ****** a *********** **** ********* ********.
Customer ******* ********
********* *** **** ******** ***** **** privacy, *********** ******'* ********* ******* ******* cameras, *******, ***** *****, ***********, ****** alarms, ***** ********, *** ******. ***, data **** ***** ******* **** ** available ** *** *******'* ********* *********. There *** ** ******* ** ****** the ******** **** ** *** *** presentation ******* *** ***** ** **** would ** ******** **** ********* ******.
******'* ******* ********** ******** ********** ** ******** *********** the ******* *******. **** ******** "******** information, ********** ***********, ********* ***********, ********, and ***** ******* ******* ********, *********** data, ******* ****, ************ ** **********-******* information, *** ********* ***** **** ***** personal ***********."
Vote / ****
******** ** ******** ***** **** ** minimize ***** *********** *****.
*** **** **'* *****,****** **** ******** ****:
*** ********* **** ********* ** * 14-quarter *** ** **.*%, ***** *** 110 ***** ****** ***** **** *** prior ****
* ***'* **** ****** ** *** they *** *********** **** ** **** is ********* ****, *** *** ******* and ** ****** *** ******** ** this, ****** *****.
********... **** ** **** **** ********** subscription *******, *-* ***** ** ****. Not **** *******. ** ** ******* and ******** **** ****** ********* ******* forward ** ***** **********. ********* **** be ****** ****, *** *** **** of ******** ***** ********. ** ** one ** *** ******* ***/****** *** never ******** *** ***/******** *** ***** and ******* ***** ********** ** *********, and ********** ***** ***** *****. *** Monitronics ********** ******* ***** *** *** due ** *********. *-* % ********* is * ********** ******. **** ********* are ******* ** *** ***** ** contracted ***.
*** *** ** ******** ********* *********? is ****** ******* ****** ** ******* customers ** ** ***** **** ********** structure ** *** **** ** ***** reported? * ***'* ****, ** ***/
**'* ******, ******* ************. ************, ********* is ********** ******** *********** ******** ***** ********* ***** *** customers *** *****. **** ****** **** lots ** *** ********* ** ******* their ******** *********. **** ******* ***** of ********* **** "**** *** ****" of ****** *********. ***** **** **********, Vivint **.*% ******** **** ***** **** of ******** *********, *** *********.
**** ***********,
****** *,***,*** ********* (*)** % ******** attrition = ***,*** ******** ***** (*) $50 *** = $*.* ******* (*) 12 ****** =$** ******* ****** **** revenue. ****** ***** (****** ** ********) of **** *** **** ********* ** about $*** *******.
****, ****** ****** ******** ****** ***,*** net *** *********** ** *** **** year, *********** **** ***** **********:
** **** **** ~***,*** **** **** but **** ***** ***,*** ** **** netted ** ***,*** ***********.
*************** ********** *********** ***** ******** *** *******'* ***** ***** ********* Officer. ****** *** ********** *** ** Safe **** ********* *****, * ***-******** company, *** ********, ** *** *** nine ***** ****** ******** ******** ** in ****.
**** ******'* ** ******** ****, *** commentary ** ***** ********* *****:
** *** ***** ********* *****, ** continue ** ******* ** ** *****, selling ********* ******** ** *** *** existing ***** **** ***********. ** ******** to ******** ******* ******** * ******** general *****, ***** **** ***** ****** to ******* ******** **** ***** ********* and ****** ** ** ********** ******....
*** *** [******** ******* *****] ****, for ****. *** *** ** ** demonstrate ** *** ********* *** ***** of ***** **** ** ***** *******. So **** *** *** ***** ********* value **** ****, ***** * ***** will **** *** ** **** **'** already ***** *** *** ******** **'** already ******. ** * **** **** from * ********-******* ******** *** *** value ** ***** ** ****. *** what *'* **** ****** ********** ** is *** *********** ** ******* **** some ********* ********* *** ***** ** get **** ** ******* ******* ** market. *** **** **** * ***** customer **** **** *** ******* *** innovative *********.
*** ** * **** ******* ** having **** **** *** **** **** as ****. ** ********* ** **** strategic *** **. *'* *** ******* upon ** ** *** ***** ****. I ** *** *** ****-**** ***** add *** *** ********* *** *** our ************.
******* ***** *** ** *****.... **** specialize ** ******* *********, ** **** concentration ** ********* *** ************ ****. Most ********* ********* ** *** **** such **** *** *************. * ******* disaster **** *** ****** ********, ***** be *** *** ** ******.... ****** they ***** *** ********* ******** ** "burglary", ***** ***** **** ***** *** attrition **** ******** ****** ** **** or ** ****** ********.... * ******* substitute, ******* *** ***** ** ******* disaster. *********** **: *** *****; ******* Services *****
* ***'* ***** * ***** ***** this **** ** ******* **** ** homeowners *********. ***** **** ** *** seasoned ********. **** ******* **** ***** is * **** ******* ******** ** an **** ***** **** **** **** of ********* ***********. **** **** ** able ** ***** *** ******?