Nest Labs was founded in 2010 to create a home that’s thoughtful – one that takes care of itself and the people inside it. The Nest Learning Thermostat and Nest Energy Services keep you comfortable and address home energy consumption. The Nest Protect smoke and carbon monoxide alarm helps keep you safe, while Nest Cam keeps an eye on what matters most in your home.
Building on the success of Nest’s energy partner program, Nest is partnering with forward-looking home insurance companies such as AXA, American Family Insurance (AmFam) and Liberty Mutual Insurance to help people stay safe while saving money on their insurance policies.
Google acquired Nest Labs in 2014 for 3.2 bn USD with a joint mission to change the world faster, by providing access to unparalleled resources, global scale and platform reach. The Nest Learning Thermostat, Nest Protect smoke and carbon monoxide alarm, and Nest Cam are just the beginning, with the Works with Nest developer program a ton of brands already in the home connect to Nest – like your hue lights and Whirlpool washer.
Nest products are available across North America and in various European countries.
A more positive role in customers’ life
AmFam knows that Nest Protect helps families stay safe and was a launch partner of the Nest Safety Rewards program launched in 2015. Sarah Pettit, director of customer experience at AmFam, says the goal of working with Nest is to help its customers in a positive way.
AmFam supplies the customer who signs up to the Safety Rewards programme with the Nest Protect smoke and carbon monoxide detector (which costs 99 USD) at no cost. Customers are asked to provide basic summarized information about their Nest Protect, including the status of the batteries, smoke sensor, carbon monoxide sensor, and connection to the Internet.
A monthly look at the data is enough to fulfill the insurer’s goals, which is to help ensure that policyholders’ homes are protected. In exchange for the monthly reports, policyholders get a 5 percent discount off their insurance premium. “Traditionally insurers help customers prepare for disaster—that’s what getting insurance is,” says Pettit. “And they are really good at the claims side, which is putting the pieces back to together, but here we can help prevent bad things from happening.”
Pettit says the goal is to expand the program over time to other perils one might find in the home, such as preventing water damage. “It allows us at AmFam to play a more positive role in our customers’ lives,” As for the data that the Protect shares with the insurer, Pettit says the decision about what data to share was an effort to make customers feel secure in sharing any data with the insurer. “There is a lot of sensitivity to this data, and around privacy and sharing information, and we’re very sensitive to that”.
Michael Robon, SVP property product at Liberty Mutual Insurance, another Nest partner, agrees: “These technologies provide the opportunity for consumers to reduce the chance of harm to their family and home by detecting events that trigger alerts on their smart-phones, wherever they may be. We believe customers seeking to monitor their homes with devices like Nest Protect demonstrate responsible behaviour. As a result, we will be offering these customers reduced pricing on their home insurance policy. This not only provides better value for our customers, but also enables us to better understand how different technologies may reduce risk for our customers.”
Why we selected Nest Labs for DIA Barcelona
The ecosystem and business model of Nest Labs, including its partnership strategy, allows insurers to make a leap in exploring the Internet of things. To learn about the impact of connected home devices on customer behaviour, to leverage new data streams for more sophisticated underwriting, and to develop new products and services and new data streams.
Nest is seeing double- and triple-digit percent increases in sales for all its devices, but it will take time to educate customers on the benefits of connected home devices.
Who is Nest
Nest, is founded by Apple alums Tony Fadell and Matt Rogers.
Tony Fadell led the team that created the first 18 generations of the iPod and the first three generations of the iPhone. Before Apple, Tony built the Mobile Computing Group at Philips Electronics. Tony has authored more than 300 patents. Whilst Matt Rogers was responsible for the iPod software development at Apple, from concept to production and is passionate about mobile products; loves team building and rapid product creation.
The idea came when Fadell was building a vacation home in Lake Tahoe and found all of the available thermostats on the market to be inadequate. “They’re not green. The thermostats suck. The smoke detectors suck. Everybody had these problems. The volume of smartphones was taking off. The prices of components were dropping dramatically. That’s where it hit me. I had been spending 10 years just trying to control the thermostat in our house in Lake Tahoe. I finally decided to make one for me. I needed it to be green. It should turn off when you’re not home. It should be able to learn your preferences. That’s what happened. There was a need.”
Presenting at DIA Barcelona
Linus Lindbert, Head of Enterprise Partnerships