The Internet of Things (IoT) ensures that there are all sorts of devices around that are constantly collecting data. Various industries are trying to figure out how to utilize that data for their businesses.
AuthorityData, a Tempe, AZ., startup that recently completed the Global Insurance Accelerator in Des Moines, IA., plans to use the IoT to save insurance companies and customers money.
How AuthorityData works
AuthorityData launched in July 2017 and entered the Global Insurance Accelerator as part of the 2018 cohort in January.
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AuthorityData is the third insurtech company co-founders Tom Smith (president) and Terje Gloerstad (CTO) have created, following Senteri and The Evogi Group.
“We built some smart home products, and started looking at the broader IoT and figured we could build an integration hub,” Smith said. “We wanted to create a platform for insurance companies to take advantage of the growth in the IoT and lower their losses over time. The name of our game is partnering with insurance companies, attracting new business for them and lowering losses.”
There are similarities to Smith and Gloerstad’s previous work with The Evogi Group, but there they were using telematics to help track speed, time in the car, mileage and other factors for auto insurance companies.
With AuthorityData, they’re using IoT devices to help detect issues like water and heat damage in homes and businesses before they become a bigger problem.
“We partner with insurance companies on a B2B level, helping them to develop new IoT insurance programs they can provide to their customers for a value-add,” Smith said. “We can help mitigate losses and make it easier for insurance companies to inform their customers when an event happens.”
Experience with the Global Insurance Accelerator
Smith said the GIA’s 100-day program helped AuthorityData develop customer leads and gather product feedback. AuthorityData remains located in Arizona, but Smith continues to make return visits to Des Moines due to it being an insurance hub.
Smith said AuthorityData has three proposals in play with Des Moines insurance carriers, and the company may end up with an Iowa presence of either staff or office space depending on the demand for business in the area.
Looking ahead
AuthorityData is getting ready for a few pilot programs over the next six months. Smith isn’t looking to rush a product to market until the company is a little farther along, noting that the insurance industry can be very slow moving.
“For now we’re focused on getting customers, more pilot programs and raising capital,” Smith said. “Soon we’ll be starting our series A investment and expanding our customer base. But in five years I’d like to see AuthorityData as the dominant IoT solutions provider for insurance providers in the US.”
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Joe Lawler is a freelance reporter based in Des Moines.
