The majority of smart home device owners are willing to share data from devices with their insurance companies, according to a new LexisNexis Risk Solutions study.
The “Smart Home and Internet of Things Consumer Research Report,” which was based on a survey of 2,500 home insurance policy holders, found that 78% of device owners are open to data sharing with their insurance companies, but two-thirds would only do so if they were offered a discount or incentives.
Of those that already own devices, 57% of are likely to purchase and install another device for an insurance discount, and 70% said they would be willing to engage with their insurer for offers of savings and coverage enhancements. A further 47% of respondents would be willing to receive new offers of insurance, while nearly three in five said they would be interested in getting energy management tips from their insurer through these platforms.
Though existing customers are intrigued by insurance discounts on smart home devices, they seem to have a different effect on consumers who are not currently using or considering a purchase of smart home devices. The purchase drivers are different, LexisNexis finds: the top consumer motivators for owning smart home devices include increased safety/security (47%), the convenience of managing devices remotely (31%) and reducing energy bills/saving money (25%). Top barriers to owning include perceived cost of the device (58%), lack of perceived need (42%) and privacy concerns (26%).
Dan Davis, Director, IoT at LexisNexis Risk Solutions shared, “"It's clear that consumers are ready and willing to bring insurance into their home automation experience for the right incentive and interactions." Davis continued to say "This insight creates an opportunity for home insurance carriers to continue the investments they are making in this space to further boost adoption, provide additional benefits to policyholders and drive engagement, loyalty and possibly better pricing."
