Apps that aim to reunite people with their lost items such as start-up Found have the potential to reduce the number of gadget and contents insurance claims, says GlobalData, a leading data and analytics company.
These apps use solutions such as computer vision to detect the brand, model and colour of a registered lost device, including smartphones and fitness trackers. If users lose their items, they report them as missing via the app. Then, if someone finds a lost item, it can be dropped off at predesignated pick-up points.
Yasha Kuruvilla, Insurance Analyst at GlobalData, commented: “These systems have the potential to greatly benefit insurance companies. If people are able to easily find their lost items, the number of claims for lost devices will undoubtedly decrease. Currently, only 15% of people have insurance for a one-off, high-value item such as a phone or laptop, while 28% of home insurance policies are contents only, but demand for contents-only insurance is expected to increase as rising house prices force more people to live in a rented home.”
As more people rent, the need for combined buildings and contents insurance will decrease. Buildings-only insurance will be purchased by landlords, while contents only insurance is more suitable for tenants.
Kuruvilla concluded: “Insurers should work with companies such as Found to raise awareness about the benefits these apps can bring. By helping these apps increase their customer bases, insurers will decrease the prevalence of claims for lost items such as smartphones while also improving their customers’ experiences and state of mind.”