The telematics discussion has evolved to include not only vehicles but private homes. With the introduction of more “Smart Home” technologies, this provides the insurance industry with new insight into how customers live.
Auto telematics is something that we have been promoting to our customers, as we believe in the importance of rewarding safe driving. When a client signs up for our telematics program, they immediately receive a 10% discount on their auto insurance. The telematics device monitors their driving behaviour and with this captured information the insurance company is able to personalize their premium.
That same idea is now being applied to homes, especially with the mass appeal of Smart Home technologies. Knowing if your customers have water pipe monitoring devices in place to detect leaks, or if they leave the oven unattended is information that ultimately can lead to reducing the risk of loss. Considering there are Smart devices available for home owners to secure their premises remotely, turn lights on and off and even control indoor temperatures we really are moving in a direction to where home telematics will become the norm.
As with most things, customers are generally not interested in monitoring devices at first, it takes time and continued awareness before wider acceptance is seen. This has been the case with auto telematics, it has slowly gained adoption and it appears that customer interest is predominately motivated by the insurance premium discount associated.
Home telematics are currently in the same predicament. Many people are interested in smart devices for their home; however, according to Forrester’s research less than 10% utilize them currently. It is only a matter of time before home smart devices gain mass popularity, especially in this digital age.
The insurance industry has started to incorporate the adoption of home smart devices into their discount programs; however, not all companies have this available. As always, please contact your Youngs Insurance Broker to see if your insurer has any home smart device discounts available.
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