HOME AUTOMATION: WHERE ARE THE INSURERS?

Faced with the growth in the number of users convinced by the experience of connected objects, many players have positioned themselves in the niche and today offer increasingly innovative services.

Among these players, we find in particular insurers interested in the following two risk prevention segments: security devices (surveillance equipment, alarms, etc.) and home infrastructure (energy systems, water supply, electrical equipment …).

A virtuous technology that transforms the market

For good reason, promoting the use of connected objects to home insurance holders is not without positive consequences on the risk of disaster (water damage, electrical incidents) and theft. According to a study carried out by Morgan Stanley, "thanks to connected objects allowing greater security of the home, early detection of disasters, the potential for risk reduction is of the order of 40% to 60%". At the same time, this also involves increasing the frequency of exchanges between the insurer and its customers in an environment where competition is raging.

Indeed, the giants of the Internet claim great ambitions in this area and, if they succeed, could relegate insurers to the simple role of “indemnifiers”. For example, Google bought Nest (thermostats, smoke detectors) then Dropcam (video surveillance) while Apple decided to develop Homekit (accessories).

Insurers are stepping up initiatives in the field

To take advantage of this new trend, insurers, as well as for the health and automotive sectors, must innovate by offering solutions that take into account the benefits of risk prevention. 'assured. This results in the more personalized analysis of the behavior of policyholders: their habits, their reflexes such for example the frequency of connection of their alarms, and therefore more appropriate pricing.

In July 2015, Axa France launched “the connected home” [1]: a prevention and assistance service offering. This allows its users to control connected objects from their smartphones, the suppliers of which are in direct partnership with the insurer. These include Orange with its smoke detectors and Myfox with its surveillance cameras and intrusion sensors.

Thus, the insurer has the opportunity to get to know its customers better and to offer them solutions that respond as closely as possible to the risks they are likely to face.

According to a study carried out in April 2016 by OpinionWay for Macif [2], only 7% of French people are asleep and already equipped while 28% say they are ready to protect their home through the use of surveillance solutions connected to smartphones.

From the point of view of the insured, this development is a source of many advantages:

• - Pricing calculated concerning the real risk
• - Greater security of the habitat
• - A wider range of products and services
• - Improved customer experience

However, the price is still a major brake [3]: at 52 € / month, one in three French people believe that such services are too expensive. According to the survey, 12 € / month would be the fair price considered to take the plunge. 

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