How Consumer Concerns with the Connected Lifestyle Impacts the Insurance Industry

How Consumer Concerns with the Connected Lifestyle Impacts the Insurance Industry
It’s hard to ignore the influx of smart technology and wearable devices in recent years, even in the insurance space. While we live in a technology-obsessed culture, a recent study revealed that not everyone is on board with this trend. In fact, 40 percent of those surveyed consider themselves to be “technophobes”.
What is Preventing People from Embracing the Connected Lifestyle?
With so much buzz about cybercrime and data theft in the news, the fear of having personal data become compromised is a leading reason why people are weary of the connected lifestyle. Some additional barriers to connectivity include unsatisfactory performance with the technology, lack of extended warranties, concerns that the costly device will easily break, and expensive repair bills.

The Positive Side of Connected Living
While there are concerns about the connected lifestyle, on a positive note, 69 percent of people feel that technology is there to make their lives easier. Even many technophobes agree that technology can make their lives better, not worse; however, they will need to overcome the barriers that are preventing them from adopting the connected lifestyle.

How Insurance Carriers Can Help Get Insureds On Board with Technology
Conducting an in-person inspection is a valuable relationship-building tool for insurance carriers as it provides them with an opportunity to educate insureds about ways to mitigate risk around the property. Many insureds are not aware that insurance carriers are now using smart home devices as inspection technology to more accurately underwrite risk. For example, by agreeing to share the data collected by a smart device such as a home security system, the insured could realize a cost savings on a homeowner’s insurance policy.

As a best practice, insurance carriers should make property owners aware of how their data will be used with privacy being the focus of the conversation. If the upfront cost of connected technology is a concern for a property owner, insurance carriers could add a lot of value by making them aware of potential rebates for making the purchase.

Our team at Insurance Risk Services has been partnering with property and casualty insurance carriers for nearly 40 years to conduct in-person property inspections. By leveraging the latest inspection technology, we’re able to put together thorough and accurate underwriting reports that enable our insurance carrier partners to make informed decisions. Through this process, we often have the opportunity to meet face-to-face with insureds. Our team of knowledgeable professionals is there to help you put your best foot forward with your clients, and using this time to share valuable information with insureds helps to strengthen relationships and build loyalty.

Contact us at Insurance Risk Services to learn how we can help you acquire and maintain a loyal base of insureds with a property inspection.