Retaining customers is a top priority. Customer expectations are rising, and insurance companies need a way to communicate with customers outside of the typical interactions, such as annual renewals or claims activity. Smart home technology allows insurers to provide ongoing value and engagement to promote more policy renewals.

Attracting more customers is an important strategic goal. Customers are comparison shopping more than ever and need a good reason to select your policy. Smart home technology provides a much needed "tipping point" between you and a competitor.

Customer lifetime value has room for improvement. Smart home technology helps reduce claims risks, such as water incidents, which is a top goal for many insurance companies.

"When you have fewer overall claims, the cost of maintaining each customer is lower," says Rojas. "Additionally, if a customer receives a discount for using this technology, that is another promoter of retention."

How to make your program more successful

As you look to launch a successful program, stakeholder alignment is critical: you need to get everyone on board and put the right resources in place to support the program. Also, consider starting small so you can show results and strategically expand the program.

Rojas suggests some insurers getting used to a new smart home program try it in stages, such as through different channels or on a regional level before rolling out state by state.

Drive impact for your customers and your bottom line

What's important is to be clear about your goals, whether it's retention, attracting new clients or reducing claims. But it's worth it, as the benefits from a smart home program make for a happier customer, and a healthier bottom line.

"It's a great story for their shareholders," says Rojas, "and if it pairs well and actually helps with the lifetime of that customer as well, it's actually a win-win."