The vast number of start-ups operating in the home automation or connected car domain represent a wealth of opportunities that insurers can take advantage of. Via IoT, they can offer a new approach to insurance.
In a house, each room can host at least one or a few connected objects. For example, the living room may have a smart thermostat to control energy spending. The front door may be lockable via a smartphone. The smoke detector in the kitchen could communicate through text messaging. Or, there could be sensors in the bathroom to monitor water usage. Lastly, a connected box could be installed in a car to decipher driving behaviour and offer advice.
Customers tend to see the development of home automation and connected cars favourably, which will reinforce the success of these innovative products. Customers are therefore more likely to invest in protecting their home better (installing surveillance cameras, burglar alarms, etc.), to extend the property occupancy, to maintain an elderly person’s independence at home (eg., using light motion sensors), etc. Everything, or nearly everything, is possible with connected objects which are becoming more and more powerful and financially accessible.
For the insurer, the sensors within connected objects are a data goldmine. Now really is the time for companies to decode their customers’ behaviour, to get to know them, and to offer them additional services which are tailored, clear, and come with prices personalised to them. Essentially, something to maintain customer loyalty and to attract new customers.
Today’s technologies are making their way across the entire value chain whilst insurers are moving towards creating services based on confidence and mutual benefits thanks to improved customer relations. This idea of mutual benefits will be the cornerstone of future growth in the personal goods and liability insurance industry, as a unique way of continuing to provide services to a demanding population as well as collecting more information on the individuals within this customer base.