While there is significant value potential for insurers in the connected home concept, there is also considerable value outside insurance product and pricing innovation. Insurers seeking to build customer relationships and establish a lasting competitive advantage through differentiation should also be thinking about new service offerings, which might include:
- Home content monitoring and replacement. Automated devices can track the age, maintenance records and general condition of major appliances and systems such as HVAC. Customers can receive automated reminders and/or recommendations on maintenance, along with suggestions on replacement purchases.
- Weather notifications. Customers can receive notifications and updates on severe weather conditions via their preferred channel, be it phone, text or email. They can also choose to have certain valuable items (such as cars) protected or placed in storage during high-risk events. Insurers themselves can make bulk purchases of replacement items—ranging from carpeting to televisions—to help customers deal with replacement issues in the aftermath of major catastrophes.
- Health monitoring. Through wearable devices, motion detectors and other innovations, insurers can monitor physiological readouts and offer recommendations related to lifestyle improvement, safety and behavior changes.
- Concierge services. Insurers can offer new concierge-type services such as scheduling appointments or booking entertainment events.
While insurers are looking at these and other areas in relation to the connected home, there are some key considerations for any approach to be successful. We will explore these next week in the last post of this series.