The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The UK home insurance market has been struggling for some time to combat the rising cost of claims. The advent of the automated home could be a big step towards reducing both the frequency and cost of claims. Although the market is still in its infancy (estimated at a maximum of ?205m in gross written premiums), automated home insurance is being seen by many as the way forward, benefiting both policyholders and insurers. Policyholders have also expressed interest in expanding the number of devices they hold, indicating future growth is likely.
It should be highlighted that, despite there being considerable benefits through the inclusion of smart devices in home insurance, doing so will also expose insurers to new risks. One of the biggest risks that will increase in line with the number of devices is the occurrence of a cyber incident. This could result in home insurance policies being developed further to include elements of cyber insurance in order to ensure policyholders feel covered against new threats such as hacking.
The development of automated home insurance is underpinned by the technological advancements made in the Internet of Things (IoT), which has seen the development of devices targeted at reducing home insurance claims.
This report provides in-depth analysis of the automated home insurance space. It looks at market size, claims, contextual and economic factors, regulation, and opportunities. In addition, the report explores how the development of automated home devices will impact the insurance value chain.
- Automated home devices can help combat the three main perils in the home insurance market while also boosting customer engagement.
- The benefits of automated home devices in insurance will only be substantial when combinations of devices are used. Relying on one automated device will have minimal benefit for insurers.
- Bundling products will be essential to ensuring that policyholders hold the device required to combat the main claims areas. However, insurers must allow policyholders to incorporate their existing devices into the policy where possible, otherwise uptake of automated home insurance will be restricted.
Reasons To Buy
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Be prepared for how regulation will impact the use of automated home devices in insurance over the next few years.