Why insurance firms are stalling on IoT – Stacey on IoT | Internet of Things news and analysis
The news this week that Amazon is looking into some form of home insurance product seems fairly speculative, but it’s not an insane idea. The Information reported the story, with a lot of disclaimers, and quoted one anonymous source at Amazon who said the company has had discussions about selling insurance as part of its smart home devices business.
For years, the insurance business has seemed like it might become a big channel or driver for connected devices. Insurance companies have partnered with firms such as Nest, Canary, and Ring to offer discounts to clients who put such connected devices in their homes, for example. And two years ago I spoke with a number of insurance companies that wanted to send policyholders home with a box of connected gear that could help decrease the risk of fire, floods, or break-ins.
The cost of connected home gear, and the confusing standards that make it such an intimidating prospect for mainstream consumers, seemed like an opportunity for the insurance business. The thinking was that insurers could draw a clear line between putting a water sensor or a smoke detector in a home and lowered claim payouts. With that insight insurers would subsidize the cost of connected devices in policyholders’ homes, maybe even send them a package of gear when policyholders signed up.