A majority of people who use smart home devices are willing to share data from the devices with their insurance companies if they are offered a discount to do so.
A new study by LexisNexis Risk Solutions found that 78% of smart home device owners would share this data to assist in policy pricing, although most (65%) would only do so if offered a discount or incentive.
Another 57% of device owners would be prepared to purchase and install another device for an insurance discount, and 70% said they would be willing to engage with their insurer for offers of savings and coverage enhancements. Almost half (47%) of respondents would be willing to receive new offers of insurance and 59% would be interested in getting energy management tips from their insurer through these platforms.
Insurance providers can build smart home programmes linked to the specific types of devices consumers are already using, the data and analytics company explained.
While more and more homes are adopting smart home devices, the creation of smart home insurance programmes has yet to meet policyholder desire to use these devices and their data for discounts, the company said.
Among those who currently own a smart home device, 81% said that receiving a discount for information/alerts would be a valuable component of an insurance firm’s smart home system/device program. Other valuable aspects include:
- Alerting consumers when sensors detect water leaks (76%)
- The insurance company contacting authorities if a person is detected outside or inside their home (75%)
- Alerts from the insurance company if security sensors detect someone at/in their home (74%)
- Insurance company remotely turning water off if a leak is detected in the home (71%)
- Insurance company automatically receiving incident-related information to expedite claims processing (73%)
“It’s clear that consumers are ready and willing to bring insurance into their home automation experience for the right incentive and interactions,” said Dan Davis, director for IoT at LexisNexis Risk Solutions. “This insight creates an opportunity for home insurance carriers to continue the investments they are making in this space to further boost adoption, provide additional benefits to policyholders and drive engagement, loyalty and possibly better pricing.”
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Tags: smart home