Many major insurers are exploring the opportunities offered by the connected home market. Here are four areas that insurers should consider:
- The connected home offers the opportunity to collect data on individual insureds or households, which can enable insurers to better manage and price risk, understand their customers and enhance claims handling. At the same time, it raises questions about the data deluge: which data is most valuable and predictive? How will insurers manage and access the data, and maintain the privacy of personal data? How will the data plug into claims processes and other systems?
- Product integration. Connected home data can help insurers develop new products and improve the customer experience. Claims leaders should collaborate with other business functions to ensure a consistent, coordinated strategy across the enterprise, and to ensure that the claims function is prepared to effectively process claims resulting from new products.
- Security and privacy. Accenture research found that 78 percent of insurance customers would be willing to share personal information in return for benefits like lower premiums or faster claims settlement. However, insurers should measure their customers’ willingness to disclose personal data, and examine current safeguards to determine if they are sufficient to protect customer privacy. Importantly, they must deliver on the promise implicit in the exchange of information, by providing faster settlement and greater transparency.
- Loss mitigation. As the prevalence of in-home systems and devices expands, insurers should set optimal targets for reducing the number and size of losses, and measure their results.
Register to download The Connected Home: New opportunities for property & casualty insurers (PDF) and learn the five key steps that define a path to success for carriers contemplating a move into the connected home market.