A new industry report from Parks Associates reveals 51% of U.S. broadband households find an IoT device that alerts them to smoke and fire highly appealing and 41% find a device that alerts them to a water leak to be highly appealing. IoT: Smart Home Business Models notes these smart home use cases would benefit insurance companies in both saving costs and adding value to their customers.
“The insurance industry is quickly emerging as a key player in multiple smart home ecosystems,” said Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates. “The advanced detection and alert capabilities in smart home devices give insurance companies new and innovative ways to avoid risks and reduce fire or water damage. State Farm and Liberty Mutual have both announced plans to offer incentives or discounts to customers to encourage adoption of smart home devices.”
The research firm reveals that 38% of U.S. broadband households have very strong intentions to buy an intelligent home device in 2016. IoT: Smart Home Business Models outlines the IoT market, including trends, business models, and partnership opportunities, and examines key alternative business model options for energy providers, smart home product manufacturers, and service providers. The report shows how connectivity enables business model innovation and addresses how partnerships can create value and shift monetization from direct to indirect approaches while expanding markets. It also provides the following:
- Analysis of IoT in relation to the residential smart home
- Details of energy markets and potential participation opportunities
- An examination of connected device value for insurance providers
- Trends in the home service contractor market
- Trends, opportunities, and partnerships in retail markets
“Discussions at our CONNECTIONS™ conference in May indicated that insurance companies are highly engaged in the smart home,” Kerber said. “Usage-based insurance, which began in the automotive market, can now be applied to the smart home. We expect to see a broad range of new monitoring devices for the home in the future.”
Parks Associates will host Smart Energy Summit: Engaging the Consumer on February 20-22, 2017, in Austin, Texas. Visit www.ses2017.com for updates on this conference on the expanding market for energy solutions and home controls and its impact on utilities, service providers, retailers, manufacturers, and consumers.
For more information about Parks Associates’ research, contact firstname.lastname@example.org. To schedule an interview with an analyst or to request specific energy management data, contact Holly Sprague at email@example.com, 720.987.6614.