The untapped potential of smart-home insurance solutions
Tech-enabled risk mitigation improves insurance customer experiences. A recent panel talked about how to make it more mainstream.
Insuretech Denver recently hosted the second installment of a panel discussion highlighting the insurance benefits inherent to smart homes.
The group brought together representatives from both fire prevention and water prevention, alongside experts in distribution and installation, to analyze the growth and importance of today’s smart home technology.
The topic is close to my heart, given my background in both smart home technology and insurance. It’s amazing to see how these innovations are not only shaping the insurance industry but also extending their reach into other sectors.
Our panel included:
- Ryan Kim, founder and CEO of Phyn, which specialize in smart water monitoring, leak detection, and management solutions for residential and multifamily properties. Phyn’s technology significantly reduces catastrophic water-related claims;
- Paul Vacquier, CEO of Beagle Services, which focus on professional deployment and monitoring of smart home technologies, particularly in water management. Their goal is to enhance the customer experience and mitigate risks for insurers;
- Ken Deering, CEO of IGuard Home Solutions, which is dedicated to preventing property and casualty risks through innovative smart-home solutions. Their products are designed to address the primary causes of fires and other hazards; and
- Jim Anderson, vice president of business development for Whisker Labs, makers of Tang. Tang is an IoT device that predicts and prevents fire and water-related losses in homes and small commercial buildings. The company partners with insurers to offer proactive policyholder solutions.
We started the discussion by asking each panelist to define smart-home insurance and its significance in the property and casualty landscape.
Deering said that despite being relatively new to the insured tech scene, IGuard is already seeing significant interest from insurers.
“Our goal is to revolutionize the way insurance is underwritten and managed,” Deering said, “particularly in addressing risks associated with aging populations and cognitive impairments.”
Vacquier spoke specifically to the impact that smart home insurance is having on underwriting and claims management.
“Smart home insurance is evolving beyond mere premium discounts to become a vital tool in risk mitigation and claims management,” Vacquier said. “We’re seeing a shift toward underwriting based on technology adoption and proactive risk prevention rather than reactive measures. This personalized approach is crucial for insurers to stay competitive and effectively manage risks.”
All of this is not to say that insurers are devoid of concerns when it comes to the adoption of smart-home technologies.
“Insurers are navigating various challenges, from customer engagement and enrollment rates to integration with existing systems and ensuring tangible ROI,” Anderson said. “While progress is being made, there’s still a journey ahead in fully integrating smart-home solutions into insurance products and processes. However, the potential benefits far outweigh the challenges, making it a worthwhile endeavor for insurers.”
Panelists agreed that smart home insurance holds immense potential, particularly as the industry shifts toward proactive risk management and personalized mitigation solutions.
The big question is, will these solutions get installed and put into action? And if so, are the costs reasonable and hassle-free for customers? We’ve seen good programs fail because devices don’t get activated. Also, carriers might end up offering heavy incentives just to get customers on board.
Also worth considering: Once a customer is activated, do carriers have access to the necessary data to validate loss prevention effectiveness? Is the customer experience positive and consistent, enhancing the insurer’s brand?
“It’s about providing seamless services and benefits to everyone involved in the value chain: carriers, agents, installers, and homeowners,” Kim said. “Our marketing referral program streamlines the process, making it hassle-free and offering discounts to homeowners. We provide everything carriers need, from co-branded landing pages to referral codes, making it easy for agents and consumers. Our goal is to make the end-to-end experience seamless and frictionless.”
The fact remains that insurers often struggle to maintain ongoing relationships with customers. They’re seeking positive, value-added experiences. Can IoT solutions truly deliver on this promise? It’s not just about technical solutions; it’s about comprehensive programs ensuring a positive end-to-end customer experience.
“Trust is paramount for carriers, especially regarding client experience,” Vacquier said. “They need to trust the solution, technology, and ongoing customer support. Trust ensures long-term adoption and partnership with vendors.”
One final concern revolved around the fact that insurers are financial and risk management entities, not technology firms. They worry about resource burden and capability to implement sophisticated technologies. They need assurance that these programs will work.
There’s also a may be a perception challenge when it comes to some smart home technologies.
“Customers must perceive ongoing value beyond just predicting and preventing perils,” Deering said. “We’re seeing increased frequency in hazards due to changes in home structures and materials. Predicting and preventing become imperative for insurers to survive.”
Daniel Turgel (dturgel@mysmartinsure.com) is CEO of the insurtech companies MySmartInsure and MindHome.
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