Research: 40% of Consumers Would Switch Insurance Providers to Get Smart-Home Goods
Consumers' excitement about smart-home tech could give insurance providers a new opportunity to gain customers, reduce claims and develop new revenue streams.
IoT research firm Parks Associates has more good news for CE pros waiting for consumer demand to catch up to their smart-home capabilities. A new report, Insurance Opportunities in the Connected Home, shows that nearly 40 percent of U.S. broadband households with an insurance policy would switch providers if it meant they could gain smart-home products as part of their new insurance service.
The report also predicts that more than 80 percent of those likely to switch insurance providers are also likely to purchase smart-home products with prevention features.
"Insurance companies that are prepared to enter the IoT space will be able to capture new market share by luring consumers already in the market for smart home devices," says Brad Russell, senior analyst, Parks Associates.
"Some innovative insurers are already offering free or subsidized smart home devices in marketing efforts, but they will need to make investments in order to have the technological capabilities to collect and leverage the data to realize the full value of these devices," adds Russell. "Both short- and long-term benefits in new services and customers will make these worthwhile."
The study suggests that insurance providers have the opportunity not only to gain new business by offering smart-home gear but also mitigate risk, reduce claims and develop new revenue streams using the products and services within the home.
The report also measures consumer preferences for various pricing, financing and incentive options.
"Currently, smart-home offers from insurance companies chiefly appeal to those already interested in smart home products and services," says Russell. "Both insurance companies and the broader consumer IoT industry will benefit by raising awareness of how damage detection and prevention solutions can save money and increase safety.
"Parks Associates research has consistently shown safety and security as the key drivers in smart home adoption, so consumers will respond to solutions that secure their homes' value and ensure safety of loved ones."
Chelsea Cafiero is Senior Web Editor of CE Pro. She also manages the corresponding websites of sister publications Commercial Integrator, Security Sales & Integration, Campus Safety and Electronic House. Chelsea has previously covered politics, local news and consumer electronics. She joined the CE Pro family in 2012. Have a suggestion or a topic you want to read more about? Email Chelsea at [email protected]
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