Homeowners that use smart tech, including devices designed to prevent fire, theft and floods in their properties, are less likely to make large home insurance claims, according to new research released recently.
Insurtech firm Hiro analysed data on smart tech ownership across 3,000 British homes, and correlated this with major claims data from the last five years.
It found that almost 70% of smart tech homeowners have not made a single home insurance claim in the past five years. Those with one or more smart devices were 35% less likely to have made a claim greater than £5,000 than those without the technology. Smart home tech adoption has exploded in recent years, and more than half of British homes now have at least one smart device in their home.
The fact that smart tech users are less likely to claim should save insurers significant amounts of money, which ought in turn to be reflected in lower premiums – but Hiro CEO Krystian Zajac says traditional insurers have been slow to react: “Insurers are seeing reduced risk from rising smart tech adoption, but are dragging their heels when it comes to passing the savings on to customers. Our research provides initial validation for a trend we’ve been observing for some time now: smarter homes are indeed safer homes. We expect a raft of other data, including Hiro’s own claims data, to further prove this link in the coming months.”
It seems homeowners are aware of the link as well – Hiro also released survey data showing two-thirds of homeowners believe that you should pay less for your insurance if you have protective smart tech in your home. That figure rises to 76% among respondents who already own and understand smart tech.
Hiro offers customers a discount of up to 25% on their policy, plus extensive savings on further technology to protect their homes.
In January, Hiro became the fastest insurtech crowdfund, smashing its target on Seedrs in 14 minutes and going on to raise more than £2m from over 700 investors ahead of its UK consumer launch in early 2021.