Neos’ UK consumer awareness could prove ‘challenging’ for Sky – GlobalData

Data and analytics firm GlobalData has revealed that only 3.9% of consumers have heard of insurtech Neos, according to its 2020 UK Insurance Consumer Survey.

This could be a challenge for Sky UK, which bought Aviva’s majority stake in the connected home technology provider in July and might subsequently be marketing its products - such as leak detectors and smart doorbells.

GlobalData believes this lack of consumer awareness is most likely because Neos is an insurtech startup.

The 2020 UK Insurance Consumer Survey polled 4,000 consumers and was published in Q3 2020.

Smart home technology

GlobalData’s survey also found that 25% of respondents who had a household insurance policy in the UK also had a smart thermometer that they could control from their smartphone.

Similarly, 38.5% had the ability to control lights in their home through their smartphone.

Aviva has been the market leader in household insurance in the last three years, holding a 10.5% market share in 2020, according to GlobalData.

Ben Carey-Evans, insurance analyst at GlobalData, said: “Aviva purchased a majority share in Neos in 2018, though they had formed an established partnership prior to that.

”It has often been used as an example of a successful collaboration between an incumbent insurer and a technology startup.

“Neos has played an important role in Aviva’s household insurance offering, so it seems likely Aviva will look to continue this in-house or find a new partner.

”Similarly, it will be interesting to monitor whether this is an investment for Sky, or the beginning of a move into smart home technology, which has become a key part of household insurance.”