The merging of a homegrown IoT startup’s tech and a corporate innovator’s existing smart property management system is expected to accelerate growth for Kansas City-built Pepper, said Scott Ford.
The companies on Wednesday announced Pepper and Notion — Comcast’s insurtech business unit — had joined to create a new IoT and smart home platform that will offer insurance carriers customized, seamless and connected solutions in the fast-growing insurtech and IoT industries. Comcast, the owner of Notion before its acquisition by Pepper, has made an investment in the Pepper-Notion combination, fueling the new venture.
The global InsurTech market is poised to grow to $167 billion by 2023 and the U.S. consumer IoT services market is expected to reach $25 billion by 2025, according to Pepper.
Together, Pepper and Notion will provide an opportunity for insurance carriers to access these high growth markets and evolve from the legacy “repair and replace” business model to a “protect and prevent” approach, the companies said.
By pairing next generation IoT and smart home technologies, insurance carriers can reduce the frequency and dollar amount of insurance claims filed by policy holders while home, property and small business owners can save up to 20 percent on insurance by proactively monitoring for water leaks, fire, carbon monoxide, mold, open doors and windows, drastic temperature changes, and more.
“We believe connected insurance tech is the next frontier of innovation in consumer IoT,” said Ford, CEO of Pepper. “Combining Notion’s leading smart property monitoring sensor system with Pepper’s full-featured platform and service offerings will provide insurance carriers a customized suite of connected solutions through a seamless white-label approach. This acquisition will allow us to leverage Notion’s leadership as an insurtech solution supplier while expanding the offering to include popular smart home and security services.”
Financial terms of the transactions were not disclosed, and it was not immediately made clear by the companies what, if any, changes are ahead for Pepper’s operations or organization and leadership structure. Branding for the joined venture also was not detailed as part of the deal’s announcement.
Founded in 2014 by Ford, Steve Bosch, and David Bottoms, Pepper enables businesses worldwide to build, deliver and monetize secure connected devices and services to consumers through a sustainable revenue model.
Click here to learn more about Pepper, which boasts such local investors as KCRise Fund, Leawood Ventures, GXPI (Evergy Ventures), Royal Street Ventures, and OpenAir Equity Partners.
Notion is an easy-to-use DIY smart property monitoring sensor system and app to enable home and small business owners to proactively monitor and reduce loss from costly property damages.
“Partnering with a trusted, next-generation consumer IoT platform like Pepper aligns perfectly with Notion’s mission to deliver innovative, smart insurance and home security offerings,” said Thomas Fad, vice president and general manager of Notion. “By joining Pepper, we will be able to further accelerate in a high-growth market and expand into new product offerings, all while continuing to deliver the best in InsurTech for our customers.”
Pepper-powered solutions will open the door to real time, actionable data for carriers and customers through its seamless and secure consumer IoT platform, the companies said. The data generated through these programs will be controlled and owned by the carrier and its customers.
In addition to improving key carrier business metrics like underwriting and claims reduction, the combination of Pepper and Notion will enable the sale of new value-added services, including additional insurance products and create attractive recurring revenue streams through a variety of connected home premium services.