Is it too late for some 2020 Predictions? Heck no, we’re still in New Year mode here at IE mag and looking forward to another year of rapid change in the insurance sector. Here are some insights on how IoT technology will makes homes smarter, and save renters and homeowners alike time and money.
“IoT-based insurtech will ensure that 2020 is the year of the personalised home insurance policy, as the industry will start to see increased value being driven from a new ‘smart home telematics’ approach.
These propositions – designed by insurtechs and deployed through strategic partnerships with insurers – will function similarly to the idea of the ‘black box’ in vehicles, with customers granted reductions on their policy premiums as an upfront reward for implementing smart insurtech devices in their home. The personalised data generated by these devices will enable insurers to offer new proactive policies that actively incentivise positive customer behaviour.
“Customers will begin to see real benefit from this sort of bespoke proposition as it will allow them to play a much more active role in shaping their future policies and premiums. With a LeakBot installed, for example, customers would be able to prove to their insurer that the property is leak free, and therefore a much lower risk in terms of the extensive cost and damage associated with escape of water claims. Insurers would not only be able to mitigate the impact of escape of water claims but could also manage and price risk much more effectively, as well as reducing their churn rate as a result of increased customer satisfaction.
“The key focus now for those in the industry will be to work out how they can continue to add value to customers through increased functionality. This means thinking about greater end-to-end service wraps that give customers more control to fix problems before they escalate – allowing them to call a plumber as soon as a slow leak is detected, for example. Insurers could also think about integrating with existing smart home tech to ensure that propositions feel rooted within customers’ daily lives, as opposed to optional extras.”
– Craig Foster, CEO LeakBot