The home security market represents a significant opportunity for insurers. Estimates point to a compound annual growth rate of 18% from 2015 to 2022, taking it to a US$30.3 billion sector globally.
According to a report published by Transparency Market Research this week, rising security needs among customers at home, the emergence of managed security solutions as an affordable option, government initiatives, and attractive insurance policies are the key factors driving the growth of home security solutions market, globally.
And North America is leading the charge, as the largest geographical market for home security solutions in 2014 with a market share of 37.3% and an estimated CAGR of 18.4% through 2022.
Biometrics, smart cards, and asset tracking systems are mainly driving the growth of home security solutions in the residential sector of North America, with demand also aided by ongoing concerns about crime and anti-social activities such as thefts and burglaries.
The report notes that service bundling is a key incentive and this is something that has already been picked up by large insurers such as
State Farm.
Company spokeswoman Angela Thorpe told
Insurance Business America that State Farm first teamed up with Lowe’s and ADT to educate customers about home control and monitoring in 2013, offering discounts on home cover for customers signing up for certain smart home control and monitoring systems.
The company claims to be the first insurer to offer US consumers access to an educational dashboard on the value of smart home control and monitoring systems via an online tool.
This year State Farm expanded its relationships with connected home solution providers by joining forces with Canary, an all-in-one security solution, and then with Silicon Valley start-up Lively, a medical alert and activity monitoring service. The Lively system features four activity tracking sensors, hub and a safety watch that doubles as a personal emergency response system and step tracker.
“Consumer and market research indicates home control and monitoring products represent a natural extension of the protection provided by State Farm,” said Thorpe.
