Accenture’s 2015 Digital Consumer Survey for Communications, Media and Technology contains a wealth of information on what consumers want in connected home products and services, and who they want to buy them from.
The first dimension we looked at is client segmentation, as not all types of customers are equally interested in different types connected home offerings. In fact, we found strong differences in customers’ expectations and needs and clustered them into 10 different segments as highlighted below.
As you might expect, there are interesting geographic differences in the relative importance of these segments; but of even more interest to insurers is our analysis of the relative attractiveness of potential insurance industry connected offerings versus other players.
Of the dozens of tests we have made, here is just one simulation we have made on the relative purchase intention for a home monitoring offering between insurers and telecom operators in the next two years. The offering we simulated has the following features:
As you can see below, consumer awareness and interest for connected home offerings vary widely between countries, with Turkish or Italian consumers far more likely to be interested than German or Swedish consumers, although one might expect these differences to decrease over time.
As a result, consumers’ propensity to purchase connected home products and services from an insurer vary widely—for instance, with Italian consumers twice as likely to purchase this type of home monitoring offering from an insurer than consumers in Germany.
In terms of global segment attractiveness, the level of purchase intent for insurers is the highest (31 percent) among premium connoisseurs and home protector segments (29 percent).
All in all the message is clear: growth in the demand for connected home products and services presents a tremendous opportunity for the insurance industry. But before we can reap the benefits of this new technological wave, we must completely rethink and revamp our existing business models to deliver new products and services to a new breed of customer.
Next time I’ll discuss how the IoT and the connected home are going to disrupt the insurance industry—and what we need to do to adapt.
Other papers on the topic that you might find useful:
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