This week’s Lowdown highlights interesting results from a new report by Parks Associates entitled, Market Snapshot: Insurance, Consumers, and Smart Home Solutions. The survey reveals that nearly 60% of respondents, (consumers with homeowners or renters insurance), are likely to purchase a smart home product that can detect, notify or prevent damage or loss in at least one scenario tested.
If purchasing a smart home device directly from an ‘insurtech’ solution, 3/4 of respondents would prefer either a discount on insurance premiums or lower deductibles, rather than any discount or rebate on the device itself. Hence, it is seen as a purchase that should offer risk reducing benefits that should translate into an insurance related savings.
More telling, nearly 40% of respondents report that they would switch insurance providers for a free smart home product. Parks Associates identifies this advantage:
“At this early stage in the insurtech market, insurers that can provide these offerings will have a first-mover advantage in attracting a higher percentage of smart home device owners and purchase intenders. These are very attractive customers, who also may be more aware of the status, maintenance and security of their homes, which give them a much lower risk profile.”
Highlights of the survey in graphical representation include the following:
- Insurance Provider Among U.S. Broadband Households with Homeowners or Renters Insurance (top five revealed here:)
- State Farm
- Farmers Insurance
- Insurance Familiarity (how well do you know your policy?)
- Interest in Water, Fire, and Anti-theft Products with Detection/Prevention Features
- Likelihood of Buying Smart Water Notification Products
- Interest in Other Services from Current Insurance Provider by Likelihood of Purchasing Smart Home Product with Prevention Features
- Appeal of Loss Detection/Prevention Products that Automatically Notify Insurer
- Home Damage Previously Experienced
- Preferred Insurance Incentive for Acquiring Smart Products
- Likelihood of Switching Insurance Providers for Smart Products
In addition to providing the above data, this report creates a profile of the consumer with greatest interest in valued-added services related to smart products and insurance. These households are younger, affluent with children – nearly 75% are interested in having devices that communicate directly with their insurance company and more than a 3rd of them are very interested in expanded service offerings from their insurance provider.
How best to use this report? Market Snapshot: Insurance, Consumers, and Smart Home Solutions is a great piece to share within your network, or utilize it to better understand the differences in the device friendly and non-interested consumer profiles.
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