The Internet of Things has hit home. From sensors to switches, web cams to thermostats and more, homes are becoming digitized environments—a network of intelligent machines and devices that can sense and interact with each other. It’s a market that is estimated to be worth $235 billion by 2016.
While opportunities extend across the enterprise, claims leaders are especially well-positioned to gain from the connected home market:
- Improved, continuous data from connected homes can enable better risk management and faster, more accurate claims handling.
- Increased insight into customers’ needs enables insurers to offer new products or value-added services—and potentially help customers avoid claims in the first place.
- More frequent and personalized interactions can strengthen the customer-insurer relationship, positioning insurers as part of customers’ everyday lives.
The connected home market is still in its early growth phase and offers significant opportunities for insurers to deliver value to customers. However, in order to do so, they must consider a complex ecosystem that includes home security providers, telecommunications companies and Internet giants (like Google). The key to success will be finding the right entry point to the market, and in offering the right value proposition for customers.
For more information:
- Register to download The Connected Home: New opportunities for property & casualty insurers (PDF).