Lite - Harnessing IoT and Parametric insurance for the environment

Nuclear, solar, wind and water power... there are many solutions in which humans have invested in the hope of reducing their impact on the environment. However, these efforts to improve our production are slow to bear fruit. This is why Lite has taken another approach : control energy consumption. Founded in 2017, the start-up is banking on the power of data analysis to help individuals make better (and cheaper) use of energy. In the form of a coaching tool, Lite enables everyone to act for the environment today.

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The main challenge for Lite was to guarantee to all their users who had committed to consuming more responsibly that their efforts would not be in vain. 

Indeed, even if we do everything necessary to reduce consumption, a particularly harsh winter or a poorly insulated house is enough to make the meters go up and cause the bill to go through the roof.

Lite asked Seyna to build an insurance product guaranteeing a stable electricity bill, whatever the weather, to support Lite customers in their efforts to consume energy responsibly!

From an actuarial standpoint, the stakes were high for Seyna as it involved building an insurance product that would take into account weather conditions, applicable to any household in France... whilst preserving users’ data privacy. 

By working together, Lite and Seyna created "Lite Protect": the first cover combining the virtues of parametric and connected objects (IoT).

When a household subscribes to “Lite Protect”, Seyna and Lite calculate an electricity consumption target for the next 12 months. This target consumption is based on two factors: 

• The household’s past consumption, made available by Lite thanks to users' Linky energy meters (which are connected to the internet) 
• Historical weather data from Météo France 

Any overconsumption detected on the user’s meter compared to the target is covered by “Lite Protect”. In other words, anyone having consumed responsibly, but ended up being charged a heavy bill due to bad weather, and not reckless consumption, will be compensated. No proof required, Seyna gets all the data from the connected objects and weather data - automatic payout. 

To achieve this, two key ingredients: 

• The design of a "Weather Engine", combining the analysis of Météo-France data and - for the first time - Linky data from Lite users’ homes 
• The development of a pricing algorithm built on the basis of (anonymised!) consumption data from hundreds of households

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Seyna and Lite were able to merge their analytical and insurance expertise, in order to guarantee that those who commit to better consumption will be rewarded for it.

Of course the double award as Best Product Innovation at the “Trophées de l'Assurance 2020” also came as icing on the cake for the troops 😉 ! 

We are happy to team up with Lite to offer a service that has a great impact : the more “Lite Protect” sells, the smaller the climate footprint !