In the nascent connected home market, insurers are still figuring out their strategy, and where and how to enter the market. Some insurers are partnering with security providers, while one insurer has filed a patent for a data recorder that tracks temperature, humidity, wind speed and other details as they affect the house. The ultimate goal is to mitigate risk and reduce claims losses—especially considering the average claim for a residential fire is more than $35,000.
Other possibilities include:
- Using in-home video cameras for digital inventories, which can expedite claims filings and make it easier to remediate losses.
- Sensors around the home can help identify causes of loss, particularly relating to wind or flood damage.
Notably, insurers can also go beyond covering risk and help customers prevent risk. For example:
- Continuous monitoring through connected smoke alarms and water leakage detectors can identify problems early.
- Insurers can encourage beneficial changes in customer behavior, such as locking doors, engaging a house alarm and turning off the stove.
- Offering regular, automated preventative maintenance at point of renewal, which can be enabled by sensors around the home.
Join me next week as I examine four areas for consideration for insurers investing in the connected home market.
For more information:
- Register to download The Connected Home: New opportunities for property & casualty insurers (PDF).