Petar Jevtić
Arizona State University
Title
Community Surveillance and Property Insurance Risk: Assessing Loss Mitigation Effects of Ring Neighbors
Abstract
Crimes relevant to home insurers, such as burglary, vandalism, theft, and arson represent a significant driver of homeowners’ insurance claims and loss ratios. This study evaluates whether law enforcement adoption of Ring’s Neighbors verified accounts, a digital platform that facilitates community reporting and video sharing, reduces the frequency of these crimes and property crime in general. Using a generalized difference in differences framework across U.S. law enforcement agencies, statistically significant reductions in crimes relevant to home insurers were found following verified account activation. The estimated effects translate into meaningful reductions in expected claims costs and potential improvements in underwriting performance. Beyond the immediate loss frequency reductions, the findings suggest broader implications for insurers: enhanced predictive accuracy in pricing models, reduced volatility in loss experience, and opportunities for product innovation. These results provide early evidence that digital public safety interventions may serve as scalable, low-cost complements to traditional insurance risk mitigation strategies.