How Technology Is Transforming The Home Insurance Market
It’s safe to say that technology has had an incredible impact on the way people live, work, socialise and more. There have been huge innovations over the past few years; it’s possible that technology has evolved our day to day lives more than ever before in the past year alone. There are very few industries that haven’t been changed by tech in some way. This of course, includes the home insurance industry.
If you’ve not kept up to date on these new innovations and the impact they’ve had, here are some of the ways it’s transforming the home insurance marketplace.
The Internet of Things (IOT)
One of the keyways that technology has advanced the home insurance market is through what’s called the Internet of Things (IOT for short). Describing the network of physical objects, or things — these objects use software sensors and other tech to connect and exchange data with other systems and devices through the internet. Everything from smart mobiles to smart fire alarms, locks, fitness trackers and security systems are some examples. Home insurance companies can use IOT technologies to learn more through data about the home they’re insurance and the activities that are taking place in the home that might affect an insurance policy.
This can include everything from smoke alarms to alarm systems, to lighting and more. The internet of things can solve what some experts deem to be a gap of knowledge about a home that goes. Beyond the value and state of the property. Which are generally only documented on the day that the insurance policy is purchased. Smart home devices can be used to bridge this gap, especially as more people than ever are using them in their homes. Studies show that 23.9 million smart home device units were shipped in the U.S. during 2019. Insurance companies can use this type of data to understand homes in a much more efficient way for both themselves as well as the customer.
On demand insurance and apps
Another way that technology has impacted the home insurance market is through the use of software and apps. Many have used software on mobile phones (as this is what the customer uses the most) and created home insurance apps. A fantastic example of this is the Lemonade AI app from Lemonade Homeowners Insurance. Having earned 4.9 stars in the App Store and on Google Play, it makes homeowners insurance instant and automates everything from getting a policy, filing, getting claims paid instantly and more from your mobile device. Their home insurance offering covers everything from your dwelling to other structures like driveways, fences, sheds and treehouses, personal property like electronics, furniture and more as well as personal liability, medical payments and more. Through the app mortgage payments are taken care of directly with the individual lender (they work with all major banks and lenders) which makes the process much faster and easier for customers.
It’s this kind of software that is really revolutionising the home insurance market. No long are you having to fill out loads of paperwork and send it off through the post. Being able to access all you need through the app is not only convenient but ensures peace of mind. Everything you need is in one spot and should you ever need to make a claim the process is relatively simple, with some excellent reviews from users.
Will technology continue to revolutionize the market?
The answer to that is — very likely. Especially as more insurance companies get on board with creating apps and software to make the process simpler and more convenient. Also, as more people purchase smart devices in their homes, the data that’s available to insurance companies will become richer and be utilised even further across the industry.
As technology becomes increasingly advanced, more home insurance companies will need to get on board with these new platforms and ensure that their offering can compete with what’s already on the market. It’ll be interesting to see, in five to ten years’ time, the continued impact of technology across all industries, but especially those that can benefit from the rich knowledge that smart devices and the like can offer.