Escape of Water remains a costly peril for P&C Insurers and a cost-effective solution offers benefits to both customers and insurers.
Customers- to avoid the stress and inconvenience of water damage
Insurers- by reducing costs by prevention rather than cure. The connected home offers prevention potential across more perils of course - from access control to water damage.
Technology strategies are only one aspect however- human behaviour another. "Compatibility, complexity, sheer bloody frustration. A rigorous scientific study of how a fully connected home can both enable and restrict residents/consumers freedom" examines the hurdles.
Insurers need to not only find technology solutions and partner with hardware, IoT, software OEMs but also tackle the motivational and behavioural aspects of customers
P&C insurers continue to make new investments into smart home startups, particularly in water leak monitoring. USAA and Canadian P&C insurer Intact recently invested in water and flood monitoring companies Flo Technologies and Alert Labs, respectively. Meanwhile, smart water leak detector startup Roost, backed by insurers including USAA, Desjardins, and Aviva, has taken a partnership approach to distribution by working with different insurers who offer discounts on Roost devices to policyholders.