Report: Nearly half of broadband internet households interested in IoT-based insurance

Report: Nearly half of broadband internet households interested in IoT-based insurance | Insurance Business

Report: Nearly half of broadband internet households interested in IoT-based insurance

A new report conducted by market research and consulting firm Parks Associates found that many Americans have expressed their interest in utilizing the Internet of Things (IoT) to enhance their insurance experience.

According to the report, nearly 60% of broadband internet-enabled US households with insurance are likely to purchase smart home devices with detection and/or prevention features. Parks Associates also discovered that almost 50% of those broadband internet-savvy households said they’re interested having loss detection/prevention devices that communicate directly with their insurers.

Parks Associates director of connected home research Brad Russell also pointed out that 20% to 30% of US broadband households are “very interested” in receiving additional services from their insurance provider, depending on the service provided.

"Consumers appreciate the safety and security value propositions of smart home products, and these use cases align with their perceptions of the role of their insurance companies, which opens up many lucrative opportunities for new services and partnerships,” Russell commented.

Other key findings of the report include:

  • Almost 40% of consumers with insurance would switch insurance providers to obtain smart home products.
  • 20-30% of consumers with insurance are likely to purchase a fire safety package for an up-front cost of $200-$400.
  • 51% of US broadband households find an IoT device that alerts them to smoke and fire “highly appealing.”
  • 41% of US broadband households find a device that alerts them to a water leak to be “highly appealing.”

Parks Associates will hold a connected home conference called CONNECTIONS on May 22-24 to “address insurance opportunities for the connected home.”

 

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