The Porch Piracy Problem.
Porch piracy – the act of unattended packages being stolen from front doorsteps – is a modern inconvenience for customers. As purchases increasingly take place online, people are more likely to become a victim of porch piracy. The New York Times reported in 2019 that 1.7 million packages were stolen daily in the US, worth an estimated USD$25M. The problem continues to grow in successive years. A 2021 Consumer Reports survey found that of 2,341 adults, more than 1 in 10, had a package stolen and two-thirds had been victims of porch piracy on two occasions. Furthermore, Consumer Reports found that 1 in 10 avoid the hassle of notifying the retailer or shipping company of the theft, instead choosing to reorder and pay a second time. The inconvenience of porch piracy directly affects consumers, whether it’s a hit to their pocket to replace the stolen order or the frustration of dealing with retailers and shipping companies to arrange reparations.
MIC’s underwriting appetite.
Our Porch Package Piracy underwriting appetite enables us to offer Porch Protection. This is designed to cover theft of a delivered package from an individual’s porch, or accidental damage that occurs within sight of an installed smart camera system recording porch activity. We deliver our solutions through programs with smart home companies and commercial customers.
Bridging a protection gap.
The traditional protection contracts fail to address the emerging needs of IoT device owners and online customers in the digital age. We are here to fill the gap in the market by addressing specific circumstances that arise from package theft and accidental damage. Through service guarantees offered by our smart home company and commercial customers, fast inconvenience payments are made to their individual customers to help them deal with the incident.
What can be covered?
We do not have pre-determined triggers or perils outlined in our underwriting appetite for this type of business. Instead, we work with partners, insurers, and reinsurers to tailor the protection to the nature of the work of their target market. For example, we can cover theft of a package in view of a smart camera system. Typical coverage can include:
- Porch Package Piracy Protection service guarantee pays to replace the stolen package.
- Accidental Damage Protection service guarantee pays to replace damaged property.
What is typically not covered?
We work with our partners, insurers, and reinsurers to create products that add value to all parties, with typical coverage exclusions being:
- Any fraud or misrepresentation on the part of a partner and/or their customer.
- Losses due to war, terrorism, strikes, riots or civil commotion.
- Losses due to nuclear, chemical, biological, radiation, pollution, and pandemic/epidemic events.
Policy limits we can offer.
- MIC can offer an aggregate claim limit ranging from $100 – $2,000 maximum, and up to 2 claims per year per covered customer.
- We work with our partners, brokers, and insurers to tailor our limits specifically to each program.
- MIC requires that data on program enrolments, premiums, and claims be provided by partners on a monthly basis with insurers/brokers being able to provide data using Application Programming Interface (API) within 90 days of a program incepting.
- MIC will work with your partners, brokers, and insurers to put in place API connections for the seamless and real-time sharing of data between parties on the program.
- MIC, working with our partners, may seek integration with apps and webpages for the purpose of monitoring and validating claims, performing diagnostics, and assessing and managing risk.
- MIC has the ability to review program pricing, terms, and conditions in collaboration with the partner, broker, and insurer (on new risks that are covered by the program) if the loss ratio (i.e. claims/premium) is above 65%.
Minimum annual program premium.
- MIC has a minimum annual premium on each program of 240,000 USD / CAD / GBP / EUR.
MIC risk carrying entities.
- MIC Global Syndicate 5183 is a Lloyd’s of London Syndicate managed by Asta Managing Agency Limited and can do business in territories where Lloyd’s is licensed to write (re)insurance.
- Micro Insurance Company regulated by the Anguilla Financial Services Commission.
This is an indicative product summary. Policy triggers, coverage, and exclusions will need to be tailored for each specific opportunity.
MicroEnsure (UK) Limited is an appointed representative of Asta Managing Agency Ltd which is Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Micro Insurance Company is regulated and authorised by the Anguilla Financial Services Commission.
Please note that any information in this product summary is for general information purposes only and is targeted at large sophisticated (re)insurance buyers, regulated (re)insurance distributors, and regulated (re)insurers.
Our products are subject to eligibility requirements, exclusions, limitations, and other terms and conditions. Please refer to your policy documentation for full details.
The content of this page does not constitute advice or a recommendation to purchase any product. You should seek professional advice before making any decisions based on the information provided. STP Group Holdings LLC, MicroEnsure (UK) Limited, Asta Managing Agency Limited, Micro Insurance Company, and their subsidiary and affiliated companies are not responsible for any losses that may arise from reliance on the information provided in this product summary.