Several recent surveys have found that Americans don't know much about smart home technology. A recent study conducted by the Harris Poll reinforced this, finding that the most common smart home item is the wireless speaker system. Of all the smart technology available, 17% of Americans have one or more wireless speakers systems at home, followed by 11% who have a smart thermostat and 9% with a smart/wireless home security system.
Lack of awareness is one reason for smart technology's absence from many U.S. homes but cost is another. According to the Harris Poll, 88% of Americans consider smart home items too expensive. Thirty-seven percent would consider making a purchase when prices drop.
Most revealing, the survey found that terminology is significant in measuring consumer attitudes and familiarity. Nearly two thirds (64%) of Americans say they don't know much about smart home technology, while Nielsen's Connected Life Report—a biannual study of consumer needs, preferences, attitudes, and behaviors around new and emerging technologies related to connected cars, homes and wearables—found that just over half of household decision makers (53%) say they know what connected home technology does.
Smart home technology provides several opportunities for insurance agents and brokers. They can educate their homeowner clients on the issues surrounding use of the technology, especially privacy concerns. But they also can discuss the ways the technology can help clients manage risk and improve their coverage profiles, reducing rates—critical concerns for homeowners and home-based businesses.
This chart from Statista shows the percentage of people who have one or more of these devices at home in 2015.
Source: Statista
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
