Automated Home in Insurance - Thematic Research
Automated Home in Insurance - Thematic Research
The UK home insurance market has been struggling for some time to combat the rising cost of claims. The advent of the automated home could be a big step towards reducing both the frequency and cost of claims. Although the market is still in its infancy (estimated at a maximum of £205m in gross written premiums), automated home insurance is being seen by many as the way forward, benefiting both policyholders and insurers. Policyholders have also expressed interest in expanding the number of devices they hold, indicating future growth is likely.
It should be highlighted that, despite there being considerable benefits through the inclusion of smart devices in home insurance, doing so will also expose insurers to new risks. One of the biggest risks that will increase in line with the number of devices is the occurrence of a cyber incident. This could result in home insurance policies being developed further to include elements of cyber insurance in order to ensure policyholders feel covered against new threats such as hacking.
The development of automated home insurance is underpinned by the technological advancements made in the Internet of Things (IoT), which has seen the development of devices targeted at reducing home insurance claims.
This report provides in-depth analysis of the automated home insurance space. It looks at market size, claims, contextual and economic factors, regulation, and opportunities. In addition, the report explores how the development of automated home devices will impact the insurance value chain.
Reasons to buy
- Automated home devices can help combat the three main perils in the home insurance market while also boosting customer engagement.
- The benefits of automated home devices in insurance will only be substantial when combinations of devices are used. Relying on one automated device will have minimal benefit for insurers.
- Bundling products will be essential to ensuring that policyholders hold the device required to combat the main claims areas. However, insurers must allow policyholders to incorporate their existing devices into the policy where possible, otherwise uptake of automated home insurance will be restricted.
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Be prepared for how regulation will impact the use of automated home devices in insurance over the next few years.
- Table Figure 1: Which companies are the incumbents in the insurance industry, and which are likely to be disruptors in the automated home space?
- Technology briefing
- Automated home
- Table Figure 2: Overview of the automated home
- Table Figure 3: Smart speakers have flooded the market
- Table Figure 4: Leading smart thermostat brands include Nest, Hive, and Ecobee
- Table Figure 5: Leading smart lights include Philips Hue, LIFX, and Wemo
- Table Figure 6: Examples of smart security cameras
- Table Figure 7: Leading smart appliance manufacturers include Samsung and LG
- Automated home insurance
- Technology trends
- Macroeconomic trends
- Table Macroeconomic trends
- Regulatory trends
- Industry analysis
- The current UK home insurance market
- Table Figure 8: The home insurance market is expected to have seen back-to-back GWP growth
- Table Figure 9: The cost of claims in the UK home insurance market increased in 2018
- Table Figure 10: A number of connected devices could be offered to help boost uptake
- Table Figure 11: The basic devices required for an automated home insurance product are not the most popular
- Table Figure 12: The uptake of automated home devices still has considerable room for growth
- Automated home market size and growth forecasts
- Table Figure 13: The current automated home insurance market opportunity is only 3% of the total home insurance market
- Table Figure 14: The market will be constrained by uptake of leak detection devices
- Table Figure 15: There is considerable potential for growth if all individuals who are considering purchasing a device were to do so
- Table Figure 16: Consistent growth could be seen across all connected devices
- Automated home insurance products will develop into a customizable offering
- Increased connectivity will create additional risks for insurers
- Automated home technology market size and growth forecasts
- Table Figure 17: The global automated home device market will record a CAGR of 18% between 2018 and 2025
- Mergers and acquisitions
- Table Mergers and acquisitions
- Table The automated home insurance story…
- Value chain
- Table Figure 18: The insurance industry value chain
- Product development
- Table Figure 19: Product development
- Marketing and distribution
- Table Figure 20: Marketing and distribution
- Underwriting and risk profiling
- Table Figure 21: Underwriting and risk profiling
- Claims management
- Table Figure 22: Claims management
- Customer service
- Table Figure 23: Customer service
- Companies section
- Public companies
- Private companies
- Further reading
- Appendix: Our thematic research methodology
- Viewing the world's data by themes makes it easier to make important decisions
- Traditional research does a poor job of picking winners and losers
- That is why we developed our "thematic engine"
- How do we create our sector scorecards?
- Table Figure 24: Our five-step approach for generating a sector scorecard
- What is in our sector scorecards?
- How do we score companies in our thematic screen?
- How our research reports fit into our overall thematic research ecosystem
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