A home insurance offering would be a ‘natural evolution’ for Amazon, according to Neil Cooper of Audio Analytic
Amazon could lead a successful foray into home insurance through its Amazon Echo device.
This is according to Neil Cooper, VP marketing for sound recognition tech firm Audio Analytic, who says reports that Amazon are planning to enter the home insurance market would not surprise him.
He says home insurance would be a “natural evolution” for Amazon, which could utilise it’s huge customer base that already own its sound-activated Echo device to quickly make waves in the market.
Cooper said: “Amazon could easily upgrade the millions of Echo devices we have in our homes to be able to recognise and react to sounds; such as breaking windows, dogs barking and smoke alarms.
“By being able to recognise and react to security and safety relevant sounds, Alexa (empowered with sound recognition capability) could offer enhanced security features, greater peace of mind for consumers, and reassurance for Amazon’s potential home insurance service that its customers are helping to reduce risk and payouts.
“Plus it includes the advantage of not needing installation or line of sight to the threats it needs to detect, like a camera, making it suitable for a wide range of rooms, like bedrooms or family spaces.”
Smart home security
Over 31m Alexa-enabled Echo devices have been sold, which Cooper described as “home security assets”.
Amazon is currently offering a range of other smart home security offerings, including ring doorbells, cloud cam and blink security cameras.
Over 2m video doorbells and 12m cameras are expected to be sold globally this year, but Cooper sent a warning to insurers that both markets will grow, giving it a “head start” in the field of smart home security.
Cooper added: “Integrating smart home security could be a smart move for any insurance provider, reducing insurance pay-outs and increasing customer loyalty. A software upgrade to Amazon’s Echo family could however give it a unique head start if it does indeed decide to make this move.”
Reports that Amazon are planning to enter the home insurance market previously sent shares in all the major home insurers tumbling.