The internet of things fueled connected home will create a fresh set of risks for personal lines home insurers
By 2020, more than 700 million homes around the globe will use connected products, according to research conducted by business intelligence firm CP Consulting, giving rise to new insurance products.
The study, which looked at consumer attitudes across the globe, also found that 47% of all UK customers between the ages of 25 to 44 will buy connected home products within the next 12 months.
CP Consulting managing director Carlo Palmieri said: “The market of connected home is starting to open up to early adopters in the UK. UK consumers understand the modular concept of the Smart Home, and will look to build connected homes around it.”
A rise in consumer attitudes towards connected homes, however, will bring about a whole new spectrum of insurable risks.
Connected homes will be liable to digital attacks, meaning that data theft and cybercrime consequences may have to be written in to existing home insurance policies.
Earlier this year, Deloitte claimed that connected home insurance policies were on the rise, but that consumer attitudes remained slow to engage, however CP’s findings now show it is changing.
At the time, Deloitte insurance partner James Rakow said: “We see increased appetite for non-mandatory products such as content insurance or those for the connected home.
“The latter will be one to watch, but will take some time to pick up as many devices through the house need to be able to interact.”