Goosehead Insurance, an independent personal lines property and casualty insurance agency, is poised to acquire Vivint Insurance within a few weeks, an executive has told Insurance Business.
The two have announced a strategic partnership to innovate new home insurance products after Vivint, a smart home technology company, shifted its insurance strategy to a partnership model.
“We plan to acquire [Vivint Insurance’s] existing book of business in the coming weeks, and at that time, Goosehead will begin providing service to business existing clients,” said Justin Ricketts, executive vice president, technology and strategic partnerships at Goosehead.
The partnership will be available to homeowners across the United States. Ricketts also confirmed all Vivint Insurance clients would be able to keep their existing policies during the transition.
“There are no carriers that do business with Vivint that are new to us,” the EVP said. “Every carrier that Vivint currently offers is also being offered by Goosehead, so the transition should be seamless from the client perspective.”
Westlake, Texas-based Goosehead represents over 150 insurance companies that underwrite personal lines and small commercial lines risks.
The rapidly growing agency reported robust gains in Q4 2022, with revenue at $57.4 million (up 43% in the quarter) and net income at $2.76 million (up 195%). Total written premiums were 44% higher year over year at $585 million in Q4 2022.
“In terms of transition, clients can expect to be very well taken care of with our service department, and in terms of future insurance needs and in the renewals on their existing policies,” Ricketts said.
“They should expect a much, much broader range of choice than they were previously enjoying.”
Goosehead aims to offer customers more personalized options to meet their unique needs and help them save on home insurance. Its partnership with Vivint allows the agency to offer smart home technology products to its clients and use the data to power its bespoke offerings.
Meanwhile, Vivint customers looking for home insurance will be able to use Goosehead’s digital agent platform for quotes.
“One of the things that was most attractive to us is just how natural this partnership is,” Ricketts said. “We're both in the business of protecting what's most important to our clients. We do that in different complementary ways.
“In terms of the collaboration, initially, the innovation will be in the ability to provide complimentary products. You have the best in physical protection combined with the best in financial protection.”
As the partnership matures, Ricketts said Goosehead and Vivint will look to further expand their joint offerings and work with more carrier partners.
Goosehead clients with Vivint systems will also be able to access additional home insurance discounts and exclusive offers from Vivint to help them further protect and secure their homes.
"By combining our industry-leading insurance model with Vivint's cutting-edge smart home technology, we're able to offer a truly innovative solution that sets a new standard for the industry and meets the evolving needs of today’s consumer,” Ricketts said.
Vivint earlier disclosed to Insurance Business that it had shut its insurance agency following its sale to NRG Energy. A spokesperson revealed the firm planned to shift its insurance strategy into a partnership model.
The NRG Energy deal, completed in March, was for around $2.8 billion in cash and the assumption of $2.4 billion debt (net of cash).
Vivint Smart Home’s Canadian business, on the other hand, was acquired by telecommunications giant Telus in Q2 2022.
Prior to the sale, Vivint’s chief insurance officer told Insurance Business that Vivint aimed to become a managing general agent to leverage its existing customer data for bespoke home insurance solutions.
“When we entered the insurance space, we knew it would be a natural complement to our smart home offering and that long term, our technology could be used to reduce customer claims and losses while simultaneously improving customer experience,” said Rasesh Patel, president of Vivint, in a news release.
“By integrating our smart home technology with Goosehead’s insurance services, we're able to expand on that vision and together provide an all-in-one solution that gives homeowners greater control over their homes and insurance policies.”
What are your thoughts on Goosehead Insurance and Vivint Insurance’s partnership? Let us know in the comments below.