In the first part of this article, we looked at some of the ways insurers are exploring connected home technology to avoid or limit losses. These include using connections to in-home video cameras to perform digital inventories  of the home's contents–expediting claims filings and making it easier  to remediate losses–and conducting continuous monitoring through connected smoke alarm detectors  and water leakage devices to enable quicker response in case of adverse events. 

As the connected home concept gains ground, however, we see new opportunities for insurers in areas outside the traditional scope of property and casualty underwriting. Insurers seeking to build customer relationships and establish a lasting competitive advantage through differentiation also should be thinking about new service offerings. 

These might include:

• Home content monitoring and replacement–Automated devices can track the age, maintenance records and general condition of major appliances and systems such as HVAC. Customers can receive automated reminders and/or recommendations on maintenance, along with suggestions on replacement purchases. 

• Weather notifications–Customers can receive notifications and updates on severe weather conditions via their preferred channel. In addition, they can be given the option to have certain valuable items (such as cars) protected or placed in storage during high-risk events. Insurers themselves can make bulk purchases of replacement items, ranging from carpeting to televisions, to help customers deal with replacement issues in the aftermath of major catastrophes. 

• Health monitoring–Through wearable devices, motion detectors and other innovations, insurers can monitor physiological statistics and offer recommendations related to lifestyle improvement, safety and behavior changes. 

• Concierge services–Insurers can offer new concierge-type services in areas ranging from scheduling appointments to booking entertainment events.

Next page: Four areas insurers should consider before entering the connected home market