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Announcing OpenSpace and Shepherd Savings

Company
Justin Levine

Justin Levine

Co-Founder & CEO

June 18, 2024

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First, a quick recap...

The Shepherd Savings program is an initiative designed to provide upfront premium savings for contractors and developers. The rewards are based on builders who have adopted, or are willing to implement for the first time, risk-reducing technology on job sites. By incorporating these tools into project delivery, contractors are enhancing their risk controls and reducing the likelihood for loss. Last month we announced Procore as the first Shepherd Savings partner. Today, we’re expanding this program to cover reality capture with OpenSpace.

Defining Shepherd Savings

  • Clients who utilize partner technologies such as Procore or OpenSpace receive automatic upfront savings on eligible Shepherd proposals

  • Savings proposals are presented side-by-side with traditional quotes

  • All Shepherd Savings partners are able to integrate their technology platforms with Shepherd in order to facilitate client feedback

  • Clients receive ongoing tracking on product usage as well as best practices to improve their adoption and further savings at renewal

Reality capture and the impact on risk controls

OpenSpace, a leader in Reality Capture technology, offers powerful tools for photo-based site documentation and project tracking. By using 360-degree cameras and AI-powered software, OpenSpace allows contractors to quickly capture comprehensive site images, which are then automatically mapped to project plans. With OpenSpace, builders can easily create a full visual record of their jobsite which enhances transparency, accountability, and collaboration, leading to better risk management outcomes.

At Shepherd, we have been impressed by OpenSpace’s rapid growth among contractors and developers across commercial construction. This is attributable to both the exceptionally easy-to-use product as well as the many different applications for this technology. OpenSpace customers use the product to document progress, ensure quality standards are being met, and maintain safe working conditions. All of these can be managed remotely through the web-based application, making the product scalable across a builder’s entire portfolio.

A example project on the OpenSpace platform:

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Claims analysis

Shepherd's mission is to quantify the ROI of field-based technologies and include these new data sources into our underwriting. Historically, clients have adopted tools like OpenSpace primarily for improvements in efficiency and productivity. Jobsite documentation and imaging have long been standard practices for almost all builders and developers, easily quantifiable through metrics such as production speed and manhours reduced. However, the additional impact on risk management, particularly claims, has been more opaque and difficult to measure – until now.

In our analysis of OpenSpace customers, encompassing over 1,000 contractors, we found significant correlations between OpenSpace usage and improved casualty claims outcomes. Specifically, OpenSpace users demonstrated a superior ability to reduce the frequency of claims, with the margin between users and non-users exceeding our initial expectations. This is consistent with our observations of other field solutions, such as Procore.

Furthermore, we observed correlations between OpenSpace usage and improved claims severity, indicating that OpenSpace not only helps reduce the occurrence of claims but also reduces the average size of losses when they do occur. This dual impact underscores the value of OpenSpace as a comprehensive risk management solution.

Combined, these findings highlight a significant risk differential for OpenSpace users compared to their peers. Reflecting this impact, we have adjusted our proposals accordingly. The application of Shepherd Savings for OpenSpace customers is illustrated in the chart below:

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Premium Savings for OpenSpace users

The current Shepherd Savings partners are Procore, Autodesk, OpenSpace, and Samsara. Any active user of these tools is eligible to receive upfront savings as part of a Shepherd proposal. As a general rule: we leverage data from technology partners only to benefit clients and never negatively impact the traditional underwriting process.

If a customer is using OpenSpace on a single project or across their portfolio, Shepherd will automatically include a Savings option when quoting new business or at renewal.

Providing Savings for OCIPs, CCIPs, and Project-Specifics

As a measure of our convinction in the value of Realty Capture technology as a risk mitigation tool, Shepherd will incentivize clients to purchase an OpenSpace license for the first time if they have not already become a customer. This is particularly applicable on wrap-ups and large projects where clients are considering their site-specific safety and quality plans. Shepherd's upfront premium savings will put meaningful dollars back into the pockets of our customers so that they can invest in the tools that drive down claims outcomes.

If you are working with Shepherd on a project-specific placement, expect to see proposal options for your client to leverage tools like OpenSpace for the additional savings.

Looking ahead with OpenSpace and more

These partnerships underscore our commitment to leveraging advanced technology for superior risk management. Shepherd's unique understanding of the data allows us to operate differently from traditional carriers and reflect the true risk profile that best-in-class clients represent.

By offering upfront premium discounts and continuous support, we aim to empower contractors to integrate innovative tools like OpenSpace into their operations. This initiative not only enhances efficiency and productivity but also significantly reduces the frequency and severity of claims. At Shepherd, we are dedicated to driving industry-wide improvements in safety and financial performance, ensuring our clients receive the maximum benefits from their technology investments.

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