Why insurance companies need to increase awareness of certain smart home technology products | Insurance Business America Real Estate Why insurance companies need to increase awareness of certain smart home technology products
Consumers do not realize the cost-saving benefits of these devices
Jeff Wilcoxson (pictured), Nationwide's vice president of strategic partnerships, said most Americans are concerned about certain smart home devices, primarily water and fire sensors, and whether they can minimize losses or I don't know how to get around it.
“Consumers are not actively thinking about the types of incidents associated with water and fire sensors, so awareness of these devices is low,” he said.
“They're not thinking about preventive devices like we want them to be and how it benefits them. If a loss event actually occurs, it will happen again. We're going to see more and more adoption of these technologies.”
In an interview with Insurance Business, Wilcoxon talked about why the current economic climate is causing brokers to take advantage of cost-saving home additions with consumers and how to have those conversations. He also revealed information about Nationwide's partnership with smart home technology company Resideo.
Build consumer trust
A recent survey conducted by Nationwide surveyed Americans' awareness of and adoption of smart home technology, and found that a significant number of respondents are interested in smart video doorbells (such as Ring) and smart home security cameras (34% and 35%, respectively). 32%).
Meanwhile, the top priorities for U.S. homeowners who do or do not own these devices are making their homes safer (60%/42%) and increasing protection (60%/42%). 48%).
Additionally, the devices that brokers most recommend to their insureds include smart sensors that detect carbon monoxide (56%) and smart door locks (54%).
At the bottom of the list of products most recommended by brokers are smart water sensors that monitor flow and leaks (25%) and electrical fire hazards (48%), two of which Wilcoxon is most enthusiastic about. contained.
“Despite the average cost of water damage being $12,514, only 9% of respondents use smart sensors that can monitor water leaks,” he said.
“On the other hand, the average fire insurance claim is about $83,000, and this device can help mitigate such extreme losses.”
Brokers build consumer trust and retention, especially as economic uncertainty leads homeowners to shop around for cheaper insurance and better risk management advice to avoid potential losses. We can recommend these devices for you.
“People are very values-oriented right now,” Wilcoxon said.
“If you can’t cut costs and are looking for ways to reduce risk or save money where possible, this is a great opportunity for brokers.”
Rather than being seen as pure transactional agents in the insurance experience, brokers can tout their advisory insights to allay consumer fears and build safer homes in the process.
Start a conversation with consumers
Wilcoxon said these types of devices are still in their infancy and have come a long way since initial acceptance by carriers.
“Smart homes are where automotive telematics was four years ago; it still feels like the Wild West,” Wilcoxon said.
“But many Americans already have leftover devices at home. Some of them are connected. If they're already using those devices, agents may not know that.” may be subject to another product.
Brokers use data and analytics to inform insureds about potential threats to their homes and their costly consequences, while discussing what is already in place and what is available on the market. You can start with
“We want to give our customers peace of mind, while also providing them with cost-saving options where possible,” said Wilcoxson.
Future partnership
To further refine and enhance its smart home solutions, Nationwide has partnered with Resideo, a global provider of First Alert and Honeywell home smart solutions, to make these technologies more accessible. ”
“We already have smart home products available to our customers, and this partnership expands those capabilities to help solve important problems facing homeowners,” Wilcoxon said. .
Still in the preliminary stages, Wilcoxon said consumers will be able to choose from a set of packaging and bundle options to protect themselves from radio frequency hazards, while also introducing beneficial new devices into their homes. Ta.
“We'll start by offering a package that we think makes sense for the majority of our customers, and then change it over time as consumer demands and concerns change.” Wilcoxon said.
The package is expected to be released in 2024.
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