Today, many home insurance companies are riding the technology wave and providing incentives for their consumers to join in. For the insurers, these new technologies mean better risk assessment and mitigation, as well as lower service costs and higher data quality. But what does this mean for you, the consumer?
In this article, we're shedding light on the most important tech trends shaping the home insurance industry and also discuss how they will affect you.
Smart home devices with sensors are increasingly being employed to detect potential signs of danger in an attempt to minimize property damage and/or enable preventative action. Research predicts that by 2023, about 15% of the global population will have employed a smart home device.
Security systems, either self-monitored or professional, protect your home and valuables.
Smart doorbells allow you to view and even talk to the person on the other side of the door right from your smartphone.
Smart deadbolts enable you to prevent thefts and home invasions, also helping you verify on your smartphone whether or not you locked the door.
Smart water leak detectors trigger an alarm when excess levels of water or moisture are detected in your home. Some are even programmed to automatically stop water flow until the cause of the leak has been fixed.
Smart smoke and carbon monoxide detectors don't just alarm, they also notify your phone, preventing fatal fires and CO poisoning and saving lives.
What this means for you
Because smart home sensors are designed to minimize property damage and ultimately reduce the number of insurance claims filed, many insurers offer to reduce premiums if these sensors are installed. Some even offer to pay for their installation. It is a win-win for both parties. Your insurers benefit from better risk analysis while you get an added layer of physical safety and enjoy greater peace of mind.
#2. Low code
You may believe that developing and managing software platforms is the job of IT professionals. However, one of the growing trends in the home insurance industry is low-code configuration tools that have enabled insurers to quickly manage and update apps and software using intuitive, user-friendly drag and drop functionality.
Having moderate or elementary software experience can now allow insurers to quickly implement the varied user interface (UI) features demanded by you the customer, in a fraction of the time usually required.
This promising trend has already allowed insurance companies to bridge the IT skill gap drastically and enable them to get new solutions into use quickly. That might mean chatbots that can answer your questions faster or online portals that are easier for you to use.
What this means for you
Research shows that about 30 million consumers are willing to switch brands for a fulfilling customer experience. Digitalization with low code helps insurance companies gain a competitive advantage, and it is also beneficial for consumers since insurance companies are in a better position to launch new ideas and iterate them for consumer retention.
Drones, which were once strictly used for military purposes, have now been commercialized and made their way into the home insurance market.
Drone technology helps insurers to provide better preventative maintenance for your properties. And in the case of property damage, drones can quickly evaluate the loss and send out the necessary data reports to hasten the insurance claims process.
#4. Predictive analytics
Insurance companies need to see the future. They need reliable ways to anticipate the risk of something happening so they can price their product accordingly. In 2022 technology has provided the home insurance industry with increasingly reliable tools for predictive analytics to study current and historical data and use the results to formulate a model that predicts future outcomes.
The tools allow insurers to collect data from different sources, including social media and smart sensors, to better understand their consumers.
Research explicates that predictive analytics help insurers drive significant profits since they are better able to identify the risk of fraud, triage claims, anticipate trends, and develop good engagement strategies that boost conversion and hence retain consumers.
There you have it! These major tech trends are rapidly transforming the home insurance landscape. By embracing these trends, insurers seek to elevate their offerings and usher in a new era of convenience for their customers. You'll be able to save more on your home insurance and access an optimized and personalized customer experience; most importantly, enjoy the peace of mind that comes with knowing that your property is well protected.
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