SMART HOME DEVICES
OVING
DATA ECTION ROUGH SMART HOME EVICES
Consumers have more smart devices in their homes than ever before , yet insurers aren ’ t really making the most of this connected opportunity
WRITTEN BY : ALEX CLERE
If you happen to be working from home today , chances are you ’ re surrounded by connected smart devices . From the smartwatch on your wrist to the smart speaker in the corner of your living room , these devices have enjoyed such widespread proliferation in recent years that around 70 % of US households are now predicted to own at least one smart device .
Part of this was due to the so-called ‘ COVID effect ’, with consumers locked up at home embracing smart home devices to help them with chores and make life a little more connected .
In fact , according to Deloitte , the number of connected devices in American homes more than doubled during the pandemic . Deloitte surveyed more than 2,000 consumers in March 2021 and found that the average US home had 25 connected devices – up from 11 in 2019 .
Could insurers better utilise smart home devices ? The growing number of connected devices in our homes raises the obvious question about whether insurers could better utilise these devices to track user behaviour , analyse risk and warn consumers if there is a ‘ black hole ’ in their exposure . In turn , this would then reduce the cause for claims and protect insurers ’ bottom lines , which they would be able to pass on to consumers in the form of lower annual premiums .
It ’ s not an unfamiliar topic ; after all , health insurers have been encouraging consumers to use fitness trackers for the best part of a decade – even going so far as to give them away for free or at discounted prices to encourage healthier day-to-day living and reduce the likelihood of illness or disease caused by their lifestyle . insurtechdigital . com 65