The Internet of Things (IoT) will bring changes down the road, but for homes that change is right around the bend.
In a recent report, Business Insider predicts growth for connected home products will peak in two years. A few stats:
- This year connected home products will account for $61 billion in sales. By 2019 that number could surpass $400 billion.
- Also this year, connected home products will account for one in four shipments in the IoT category, nudging upward to 27 percent in 2019.
- Leading the way in connected home devices are home energy products and safety and security systems.
Much like many other categories within the IoT, the connected home brings big change to insurers. The implications are significant. What happens, for example, if remote controlled security systems accessible via smart phone become standard in homes? Further, what happens if insurers build this product into an app, opening a two-way data stream? When insurers can have house-by-house, block-by-block, city-by-city security data, how will policies and premiums evolve?
When it comes to the connected home, insurers have a lot to think about. Devices that automate, monitor and control homes have the potential to allow carriers to better assess and mitigate risk as well as introduce new product offerings. Clearly an opportunity exists to increase customer interactions and get closer to the customer, adding value to their lives—and increasing retention rates in the process.