Smart home monitoring technology is rapidly growing and expected to increase by 33% over the next three years. As a result, more and more people are adopting smart home monitoring systems to keep their families and homes safe from threats such as burglars, fires, floods, gas leaks, and other dangers.
Smart home monitoring systems utilise smartphone apps to monitor all devices in a home, whether connected directly to the Internet or not, providing the user with the ability to monitor their property from anywhere, at any time. Additionally, the technology can help prevent theft and other types of crime in the neighbourhood by alerting the user when suspicious activity occurs, such as doorbell rings or cars driving by.
Smart home technology can prevent claims for home insurance companies and be controlled by insurers, such as sensors that detect fire or flooding, smart locks that allow insurers access to homes when necessary, and smart appliances that allow insurers to monitor usage patterns accurately to assess risk. These technologies will not only make it easier for insurers to assess risk and prevent losses, but they will also save money on claim processing costs.
One hypothetical where smart home monitoring systems can not only mitigation issues through early alert, but avert issues that would result in claims is with break ins. Even in rudimentary smart systems, like those only equipped with a smart doorbell system, the sensor is activated by movement caught by camera, an alert is sent to the homeowner, and either an alarm can be deployed or the police can be called to scare off the would-be burglar before any entry to the property and theft can be carried out.
As the smart home market continues to grow, insurance companies are leveraging technology to improve home insurance policies and reduce claims. By partnering with technology companies, insurers are developing new ways of reducing claims costs, including smart homes that can monitor themselves and report any problems, reducing the need for inspections. Despite the initial up-front costs for insurers in kitting out buildings or houses with a smart system, the costs demonstrated by spending to save – like that employed via telematics in the car insurance industry – is very real.
The expanding impact of technology on home insurance is influencing almost all parts of it, from improved consumer interaction to new revenue sources and education. Insurers can use technology to engage and advise their customers in a way that was not possible before, providing information about the risks associated with owning certain properties or living in specific areas.
By implementing smart home technology, companies can offer customers a discount on their homeowners’ insurance coverage and provide real-time monitoring for water leaks, CO2 alarms, and other threats.
Technology is the future of home insurance, and it’s already changing the way we think about claims. We are here to help insurers adopt the latest technology to enhance their home insurance policies, reduce claims, and improve the customer experience.