Smart home devices are slowly but surely becoming more prevalent throughout North America. The ability of these devices to be monitored and controlled remotely via a mobile application could reduce security risks for homeowners. Further, voice control, which was recently introduced to the smart home, offers users the flexibility of turning devices on or off from multiple locations, providing an element of convenience and enabling users to quickly prevent mishaps — say, by remotely turning off an oven that was accidentally left on.
The maturation of the smart home market is driving demand for smart home insurance. And though this will present a major opportunity for providers, it will also likely pit two types of companies against each other:
- Legacy insurance carriers. These companies, which include major players like GEICO and Travelers, have been providing homeowners insurance for decades. They have the advantage of a large existing customer base to market further services to, similar to how cable companies in the professionally installed smart home market do for their services.
- Smart home ecosystems providers. Typically, these are some of the world's largest tech companies; they often offer both the devices and the ecosystems that smart home devices operate on. For example, Amazon provides consumers with an Echo device, which controls other devices and serves as the center of the smart home ecosystem, and the company offers an insurance policy on the home powered by devices running on that Echo ecosystem.
A recent study on [...]