Despite their obsession with tech, half of savvy Millenials questioned in a survey from insurance tech specialist Auger said they won’t invest in smart devices to protect their home because there are no benefits from providers.
Technology is beginning to play more of a role in home security than ever before – machine learning and smart cameras which can distinguish between pets and people when triggering motion detectors; connected lighting systems and smoke detectors which test themselves are just a few examples of the latest developments.
In the survey of 2,000 Millenials aged 18-34 across the UK, some 50 per cent of those questioned said there is no benefit to invest in technology for increased security, with more women (53 per cent) than men (43 per cent) not using smart tech.
Only 15 per cent of those questioned said they would invest and wanted to do everything they could to make their homes safer despite the lack of incentives from the insurance industry.
But the survey from insurance tech leader Auger found that more than a quarter of tech-hungry young men questioned – 26 per cent – have committed to it around their homes whether their insurance company encourages it or not.
Neil Wilks, head of technology at Auger, said: “This shows how far there is a disconnect between this segment of young people, the homeowners of tomorrow, and the current offer of the insurance industry.
“The challenge is for providers to listen to what this group of people want in terms of incentives, understand the reality of the efficiencies these technologies can bring in reducing risk and start to make it work for themselves and their customers.
“Investing in smart home technology means people are taking proactive steps to safeguard their greatest asset, but currently premiums do not reflect the benefit technology can present in helping to reduce the risk of a claim.
“Other industries are recognising the role technology can play – car manufacturers, for instance, place great importance in removing the human element of risk through utilising technology, but the home insurance market is yet to embrace all the benefits.”
Only 10 per cent of those earning £10,000 or less spend money on tech, compared to 12 per cent (£10,000-£20,000), 16 per cent (£20,000-£40,000) and 36 per cent who earn more than £40,000.
Looking to the future, many of the males in this age range – 32 per cent – say they will invest in devices around the home because they are getting cheaper, while females are more likely than males to invest in tech purely for security in future years (28 per cent).
More than four million Britons have invested in smart devices for their homes creating a market currently valued at £30 million.
Insurance Industry Sweeteners For Smart Home Owners
Insurance-Edge.net had a quick scout about online to see what rewards, extras or discounts a tech-savvy home owner could expect in return for making their place truly connected.
New start-up Neos offers home owners who switch to their product a set of sensors, leak detectors and CCTV cameras, but no particular discounts. A more pro-active approach can be found from Policycastle, who offer a 15% reduction in your premium, if you install Cocoon. Aviva and Zurich also offer a discount to Coccon users.
But a one hour trawl online revealed that most home insurance specialists offer nothing upfront – yep, nothing – in return for a connected home. So Auger has a point; consumers who are willing to spend thousands installing CCTV, IoT gadgets, app-monitored doo locks etc should get something back, or they really are simply handing over a stack of valuable data to their insurer for free.