The modernization of the home has insurance providers anticipating significant changes to their service plans. A study conducted by NTT Data found that while the addition of plans covering smart homes will attract new customers, fears about the use of consumer data by insurance providers are hindering the widespread implementation of these claims. Other provider concerns highlighted by the study included the analytics, security, and general costs of smart products.
The growing number of smart homes across the U.S. is even more evidence that owning or renting property is starting to experience the modernization of American life.
However, as the number of smart homes in the United States rapidly approaches 42 million, consumer attitudes are changing about the sharing of data surrounding their home. A majority of households are willing to share certain data about the use of smart products in their homes, especially when offered financial discounts on bills and policies. As more insurance companies begin covering data integrity in business with policies like Cyber liability insurance, homeowners concerned about security issues with smart devices should expect similar coverages in the near future.
Certain changes by insurance companies could come to benefit both the provider and policyholder, as a closer connection to providers in a smart home will go far to prevent losses. Coverage providors, after embracing the cutting edge technologies of smart devices, will be able to prevent and prioritizing certain household issues that eventually lead to claims.
Ultimately, faster adoption of smart devices by both the insurer and policyholder will result in a more efficient and overall positive relationship between the two. Smart devices allow their owners to be more connected to things happening in their home and ultimately, lets policyholders take more initiative in protecting their homes and possessions.
Some insurance providers have already begun offering smart home specific plans and sizable discounts on homeowners insurance. State Farm, an insurance provider in the United States, even offers installation and monitoring discounts specific to smart security systems.