Here’s something for makers of Internet of Things (IoT) products to ponder: A majority of American homeowners might be willing to invest in smart-home products to get discounts on property insurance.
According to a just-published report compiled by NTT Data, nearly two-thirds (64%) of more than 1,000 U.S. consumers surveyed reported that they would purchase smart-home devices if insurance companies provided discounts. These findings are a timely reminder of the importance of taking a holistic, ecosystem-level view of IoT product development — and of recognizing that IoT technologies and IoT data can change pretty much everything about how you approach your connected-product development, manufacturing, marketing, and support.
Among the smart-home products listed in the survey, which also included 100 regional and national U.S. insurance carriers, five stood out as consumers’ most-wanted devices:
- Smoke and carbon-monoxide alarms
- Garage-door openers
- Door locks
- Door bells
Half the respondents — many of them Millennials — said they expect to purchase smart-home devices in the future.
Not surprisingly, the report showed that 80% of U.S. consumers are concerned about security and 73% are concerned about privacy. For manufacturers of connected products, these findings are another signal that homeowners are unlikely to trust smart-home technology to collect their data until improvements across the IoT ecosystem are in place and clearly evident.
“Taking the time to understand customers’ goals, provide transparency on data security and data privacy, and offer value-added services are the keys to improving carrier-customer relationships and cultivating new revenue streams,” the report advises insurance companies. IoT manufacturers should heed this advice, as well.
Another tip to insurers from the report authors: Partner with smart-home ecosystem players — especially companies that will control the data flow from smart-home devices. Reciprocal tip to manufacturers of connected products: Consider insurance companies as you’re building out your IoT ecosystem.
You can download IoT Disruption and Opportunity in the U.S. Insurance Industry from the NTT website. To learn more about what’s driving the smart home market, download the Harbor Research white paper “From Smart Devices Smart Systems: The Keys To Catalyzing Smart Home Adoption.” And if you’re interested in finding out how Ayla Networks and our comprehensive IoT platform can support your smart-home product development or partnership prospects, get in touch with us.