Smart Products and Insurance Use Cases: Understanding the Consumer Perspective
Consumer attitudes toward adoption of smart home devices provide critical guidance for insurers and their ecosystem partners in crafting their IoT strategies. Both consumers and insurers show growing recognition that smart home technology can help protect the home and reduce loss and associated costs. With smart home purchase intentions increasing, insurers have a significant opportunity to acquire and retain customers by offering new and innovative ways to mitigate risk and protect their homes. Adoption of at least one smart home product reached 26 percent of U.S. broadband households in 2017, up from 19 percent in 2016, according to Parks Associates research.
Recently, Parks Associates tested consumer interest in smart home devices that can detect potential damage or loss due to water, fire, and theft and then notify the homeowners and/or take automated steps to prevent the loss. Almost 60 percent of U.S. broadband households reported a likelihood to purchase one of several smart home products with these insurance-related features. While purchase intentions don’t translate to adoption, there is clearly strong interest for insurance-related devices. Interest in antitheft devices slightly edges out interest in water and fire products, but the opportunity is equally robust for all three device categories.
On average, 30-40 percent of consumers are interested in smart products that address various use cases in these categories.