New Research Reveals American Consumers Would Be Willing To Switch Insurers To Get Discounts For Smart Home Products

By   January 17, 2017

Research findings by NTT DATA, revealed that American customers would be willing to switch insurers, just to get discounts on their homeowners insurance policy for utilizing Smart Home devices. In fact, the research showed that two out of three customers would be willing to make the change.

 

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These customers are classified as “seekers”, which is the customer segment that insurers should pay close attention to. The seekers are not as loyal to their current insurance carrier and could pose a disruption, while offering opportunity growth for other insurers.

Over 1,000 American consumers and 100 American insurers partook in the survey. NTT DATA, an IT service provider and global business, focused on the opinions of consumers and whether or not they would be willing to change insurers to receive discounts for utilizing Smart Home devices such as Smart garage door openers, smoke and carbon monoxide detectors and thermostats.

Other findings include:

  • Fifty-three percent of seekers acknowledged they would trust Apple or Google for homeowners’ insurance coverage, even though they are a non-traditional provider.
  • There were three main reasons why American consumers would invest in Smart Home gadgets, security, cost savings and safety, with only 73 percent of consumers concerned about privacy and 80 percent concerned about data security.
  • Seekers are willing to share data from Smart Home devices, but there was a concern about which device the personal data would be extracted from. Fifty-nine percent of consumers would be willing to share data from CO2 detectors, 47 percent from thermostats, 41 percent from security systems and 24 percent from cameras.
  • Insurers realize that IoT offers unlimited opportunities to expand, with 77 percent of providers already gearing up IoT initiatives and 59 percent admit to making strong progress in leveraging Smart Home Technology to improve products.

“The IoT ecosystem is disrupting the insurance industry, inviting new competitors, potential partners and changing how products and services can be delivered,” said Lepine. “Accessing the data that comes from smart home devices and being ready to leverage it will be key to carrier success. NTT DATA recommends insurance companies prioritize the development of partnerships with the smart home gateway firms who will control the flow of this data. Don’t get shut out.”

For more information about the NTT DATA study, please visit the company’s official website www.nttdata.com.

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